“The committee notes that IRDAI has proposed amendments to the Insurance Act, 1938, allowing for composite insurance businesses and the same is under consideration of the Ministry. The committee expects the ministry to expedite the matter to enable the insurer to offer both life and non-life products,” it said in a report.
The Centre has prepared a draft bill seeking amendments to the Insurance Act, which also includes raising the foreign investment limit to 100% from the current 74%. The amendments have been proposed for the Insurance Act 1938, the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999.
On the issue of Goods and Services Tax on health insurance and microinsurance products, the parliamentary committee said it is glad that the IRDAI agrees with the committee’s recommendation for reducing GST rates.
“Moreover, the Department of Financial Services also supports this proposal,” it said, adding that the finance ministry should coordinate and do the needful so that a decision is taken on this issue.
On the financial health of the four public sector general insurers, the committee recommended an appropriate strategic roadmap to implement the intended remedial steps for these companies to improve their competitiveness and enable them to attract sufficient capital and talent to grow.It also recommended setting up an inter-ministerial working group to cover gaps in the health insurance sector and formulate and execute a comprehensive plan.An inter-ministerial working group with participation from IRDAI, NHA, other concerned agencies, consumers, health care providers, and healthcare insurance firms should be established to develop a long-term plan for covering all sections of society with tailored government and private sector health insurance solutions, the committee noted in its report.
Cyber Security Protection Authority
In another report, the parliamentary committee has recommended the establishment of a Cyber Security Protection Authority-a centralised, overarching regulatory authority dedicated specifically to cyber security, similar to the role of the Directorate General of Civil Aviation (DGCA) in the aviation sector.
