NEW DELHI: The Centre will introduce the much-awaited Insurance Laws (Amendment) Bill, 2022, in the upcoming monsoon session, a top government official told TNIE.
Bill will pave the way for single entities via composite licence to enter into non-life insurance products and vice versa.
“The Bill will bring far-reaching reforms in the sector. The composite licence is one such big reform. The Bill proposes to remove Rs 100 crore minimum paid-up equity capital requirement for carrying out insurance businesses in India,” the government official said.
He added that the changes in insurance law will facilitate the entry of new players in the market, giving a further boost to economic development by creating job opportunities for the youth. “Amendments in Bill are aiming to provide financial security to the end consumers and better returns for the businesses. It will enable ease of doing business,” the official added. “After the passage of the bill in the monsoon session, the reforms will be implemented in the current financial year,” the official cited above stated.
“With a composite licence, customers will have the convenience and flexibility of accessing a comprehensive range of solutions and services under one roof, thus enhancing overall customer experience. This will help empower the industry to offer a broader spectrum of products, enabling individuals and families to secure their financial future through a single trusted source,” Max Life’s MD & CEO, Prashant Tripathy said.
The finance ministry in November 2022 had invited comments on proposed changes in Insurance Act, 1938, and Insurance Regulatory and Development Authority Act, 1999. Some changes introduced in the bill include insurance intermediaries, captive insurers, insurance businesses, Indian insurance companies, insurance cooperative societies, insurers, and personal accident insurance businesses, among others.