Page 12 - Insurance Times August New 2023

New laws to usher in in- and Actuary for IRDAI nearly six months
in advance. IRDAI moves SC against
surance reforms
It is for the first time the government SAT stay on Sahara Insur-
The government plans to introduce leg-
has started looking for the top posts in ance order
islation during Parliament's monsoon
IRDAI much in advance. The regulator
IRDAImoved the Supreme Court, chal-
session to implement comprehensive
usually gets a replacement several
lenging the Securities Appellate
reforms, including provisions for a com-
months after the retirement of an offi-
Tribunal's decision to stay its order di-
posite insurance licence, relaxed entry
cial. The current IRDAI Chairman
recting Sahara India Life Insurance
barriers for companies, and simplified
Debasish Panda was appointed nearly
Company to transfer its life insurance
investment rules, in the insurance sec-
nine months after his predecessor re-
business to SBI Life Insurance Company.
tor, two people aware of the develop-
tired.
ment said. Seeking urgent hearing in the mat-
Rakesh Joshi, Member, Finance and In-
ter, Solicitor General Tushar Mehta,
In the monsoon session, the Centre is vestment, IRDAI, who had joined on
appearing for the IRDAI, told a va-
expected to introduce two pieces of leg- March 22, 2022, will be retiring on De-
cation bench led by Justice Surya
islation-the Insurance Laws (Amend- cember 2, 2023 after reaching 62.
Kant that the SAT stay may impact
ment) Bill, 2023, and the Insurance Bill, Parmod Kumar Arora, member, Actu-
servicing of Sahara policyholders.
2023. The first legislation would be ary, IRDAI, who had joined on Jan 4,
The judge, however, said there was
aimed at reforms to boost insurance 2021 will be completing his three-year
no urgency and directed the matter
penetration, improve efficiency, and tenure on Jan 4, 2024. Arora will be 58
to be heard on its scheduled date on
enable product innovations. The Insur- at the time of completing his three-year
July 3.
ance Bill, 2023, on the other hand, is stint at the IRDAI.
The insurance regulator said its June
being drafted to simplify and update
2 order to immediately transfer
the legal framework governing the sec- IRDAI retains mandatory
thelife insurance business of the Sa-
tor. It entails the repeal and re-enact-
cession of business in hara firm to SBI Life was passed due
ment of the Insurance Act, 1938, aim-
to the former's "rapidly deteriorat-
ing to simplify pre-constitutional enact- favour of GIC Re at 4% for
ing financial position, and as the pru-
ments by renumbering and eliminating
FY24 dential regulator being seized of the
obsolete British-era provisions.
IRDAI has maintained the status quo company's state of affairs, for pro-
on obligatory cession of business for the tecting and promoting the interests
Govt begins search for
financial year 2023-24 at 4 per cent in of the erstwhile holders of life insur-
IRDAI members in advance favour of GIC Re, disappointing the pri- ance policies issued by Sahara by
vate sector general insurers and foreign transferring its life insurance busi-
The government has started looking for
reinsurers with operations in India. ness to another fit and proper insurer
suitable candidates to fill the two posts
with sound financials".
of Members - Finance and Investment The government had notified the move
10 August 2023 The Insurance Times