Approving a government bill to amend the Insurance Act, the Select Committee in its report to the Rajya Sabha recommended a composite foreign investment cap of 49 per cent which would include Foreign Direct Investment (FDI and portfolio investment.
It also recommended that penalties on insurance companies be linked to seriousness of offences committed by them. It has suggested mechanism to ensure that there is minimum scope for subjective interpretation.
The panel suggested that the capital requirements may be retained at the Rs 100-crore level to ensure health insurers have adequate capacity for providing critical services to citizens, and it also pitched for giving top priority to this segment.
"The insurance Bill be passed," the Committee said, adding the government may take more measures as recommended by it
The committee suggested that the Law Ministry and the insurance regulator IRDA should modify the definition of the term "nominee" in order to remove any ambiguity. The Supreme Court had suggested that there was no need for two categories of nominees -- beneficiary nominee and collector nominee.
vinay mohanty
The Rajya Sabha had in August appointed a 15-member Select committee to scrutinise the long pending Insurance Laws (Amendment) Bill, 2008. The Bill was held up for nearly six years on account of political differences.
The panel, headed by Rajya Sabha MP Chandan Mitra, has suggested inclusion of a person from the insurance industry in the Securities Appellate Tribunal as an expert.It also recommended that penalties on insurance companies be linked to seriousness of offences committed by them. It has suggested mechanism to ensure that there is minimum scope for subjective interpretation.
Meanwhile, the Select Committee unanimously agreed not to bring down the paid-up equity capital in the health insurance sector as compared to the life and general insurance.
The panel suggested that the capital requirements may be retained at the Rs 100-crore level to ensure health insurers have adequate capacity for providing critical services to citizens, and it also pitched for giving top priority to this segment.
"The insurance Bill be passed," the Committee said, adding the government may take more measures as recommended by it
it also recommended that adequate protective mechanism be instituted to ensure agents get their commission and the commission structure be determined by IRDA on market conditions.
No comments:
Post a Comment