Page 12 - The Insurance Times August 2025

IRDAI Flags Gaps in Health (CIS), appointing a product manage- board's customer-service committee,
ment panel member to its Claims Re- and publish quarterly grievance statis-
Insurers' Compliance with view Committee, and establishing pro- tics. IRDAI says the move will shorten

Master Circular tocols for timely portability data sub- resolution cycles, cut escalation to ex-
The Insurance Regulatory and Devel- mission to the Insurance Information ternal forums and boost policy-holder
opment Authority of India (IRDAI), Bureau. trust.
during routine inspections at select Stakeholders have until 17 August 2025
health insurance companies, flagged IRDAI Drafts Internal Om- to comment on the proposal, which
concerns regarding lapses in imple- budsman Norms to Speed complements the existing Insurance
menting regulatory provisions under Ombudsman scheme and aligns the
the new health insurance master cir- Up Insurance Grievance sector with similar internal-ombuds-
cular. Redressal man frameworks in banking.
According to a CNBC TV18 report, The Insurance Regulatory and Devel-
eight insurers, including New India As- opment Authority of India (IRDAI) has IRDAI Cautions Insurance
surance, ICICI Lombard, HDFC ERGO, issued draft regulations requiring every
Tata AIG, Star Health, Niva Bupa, Care life, general and health insurer with at Brokers Amid Frenzied
Health, and ManipalCigna, are under least three years' operations to Stake-Sale Activity
scrutiny for compliance issues, particu- appoint an Internal Insurance Ombuds- The Insurance Regulatory and Devel-
larly around claims settlement. The man (IIO). Empowered to adjudicate
regulator is reportedly assessing po- complaints involving amounts up to opment Authority of India (IRDAI) has
tential enforcement action for non- Rs. 50 lakh, the IIO will review all issued a stern advisory to insurance
adherence. grievances that an insurer proposes brokers after noticing a spike in hurried
to reject or partially settle and stake-sale proposals and merger talks
Responding to the inspection, New In- within the broking fraternity. In a re-
dia Assurance clarified that the exer- must give a binding, time-bound cent circular, the regulator urged bro-
decision.
cise was constructive and aimed at kers to seek prior IRDAI approval for
strengthening industry practices. The Insurers must establish the new any share-transfer or control change,
insurer noted it had already acted on mechanism within three months of comply strictly with the 2018 Broker
IRDAI's procedural feedback-simplify- the final guidelines, create a dedicated Regulations, and maintain the man-
ing the Customer Information Sheet ombudsman office reporting to the
dated Rs. 75-crore net-worth thresh-
old.
Ajay Seth Appointed IRDAI Chairman for Three-Year IRDAI expressed concern that some
brokers-lured by lofty valuations and
Term private-equity interest-were circulat-
The Appointments Committee of the Cabinet has named Ajay Seth, former ing unsolicited deal pitches and signing
Secretary of the Department of Economic Affairs, as the new chairman of term sheets without adequate due dili-
the Insurance Regulatory and Development Authority of India (IRDAI) for gence or board consent. The regulator
three years, or until he turns 65, whichever is earlier. A 1987-batch IAS of- warned that any non-compliant trans-
ficer from the Karnataka cadre, Seth recently led India's G20 finance-track action could face cancellation and
negotiations and oversaw the rollout of sovereign green bonds during his monetary penalties, and reminded
tenure at the finance ministry.
promoters they remain liable for poli-
He succeeds Debasish Panda, whose term ended in March 2025, and takes cyholder interests even after exiting.
charge at a pivotal time as IRDAI pursues its "Insurance for All by 2047" With consolidation accelerating before
agenda, shifts toward risk-based capital rules, and pushes digital and micro- the proposed hike in capital and sol-
insurance expansion. Industry observers expect Seth to accelerate product- vency norms, IRDAI's caution aims to
approval reforms, strengthen consumer protection, and deepen insurance ensure orderly market conduct, pro-
penetration, especially in rural markets. His mandate also includes closer
tect customers, and preserve confi-
coordination with other financial regulators to foster a unified approach to
dence in the fast-growing broking
emerging risks such as cyber and climate.
sector.
The Insurance Times August 2025 11