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sector Its chairman and members are appointed by Government of India IRDAs HQ is located at Hyderabad
To promote orderly growth of insurance industry in the country, including registration of insurance companies Ensure continued financial soundness and solvency Regulate insurance and reinsurance companies Eliminate dishonest and unhealthy competition Insurance business opens up to private sector thus ending the monopoly of LIC
2.New India assurance company ltd 3.Oriental insurance company ltd 4.United India insurance company ltd
Protection of the consumer Promotion of the industry Competitive neutrality Transparency Cost effectiveness Accountability Flexibility
In 1993, govt. formed a committee under the chairmanship of RN Malhotra to find out a way to reform the insurance sector The objective was to complement the reforms initiated in the financial sector It recommended that private sector players be permitted to enter the insurance industry Foreign companies should be allowed to enter by joint venture with Indian partners Following the recommendations, in 1999, IRDA was constituted as an autonomous to regulate & develop the insurance industry
Life Insurance - Insurance that pays out a sum of money either on the death of the insured person or after a set period
General Insurance - Insuring anything other than human life is called general insurance Reinsurance - It is insurance that is purchased by an insurance company from another insurance company (reinsurer) as a means of risk management
LIFE: The Oriental Insurance Co. Ltd National Insurance Co. Ltd United India Insurance Co Ltd
GENERAL: IFFCO Tokio General Insurance Co Ltd National Insurance Co. Ltd United India Insurance Co Ltd REINSURANCE: General Insurance Corporation of India
Defying its on norms The insurance regulator prescribed a 10% limit on equity holding for all life insurance companies But , LIC acts independently
The Insurance Act did not allow companies to divest stake before completing 10 years of operations
Reliance Life sold a 26% stake to Nippon Life in a clear cut case of violation
Stakeholders as members
It is a licensed corporate agent of Bajaj Allianz General Insurance Company Limited It sells products directly to retail consumers through the internet and through call centers No restriction on the amount of capital and proportion of FDI if they operate through this route Since Berkshire Hathaway cannot operate in India as a full-fledged foreign entity, it has entered the Indian market as a corporate agent
Clearer role definition of IRDA Selective application of rules should be stopped Rein in LIC Cap on the foreign investment in the sector should be increased to 49%