Page 5 - Life Insurance Today May 2016

Cover Story

THE ROAD AHEAD
FOR THE LIFE
INSURANCE
INDUSTRY

I nsurance Sector underwent a lot of sea-changes,  More penetration into Rural & Social Sectors
when it was privatized in 1999 and the Insurance
Regulatory & Development Authority of India- IRDAI-  Penalty for the insurers for the non-compliance of the
came into being. Now one more revolutionary Investment Regulations
change is sweeping across the Sector with the passing of the
Insurance Act 2015 by the Government of India.  Some relief from the stringent provisions of the
Section 45 of the Insurance Act 1938 under which the
This change has raised the expectations of the customers insurers were rejecting death claims of the policies
manyfold in the following portfolios: without proper justification
 More innovative products
 Customers becoming co-partners in the running of the
 Cheaper & affordable plans insurance companies by their participation in the
Boards of the insurers, etc.
 More improved customer service standards
The Role of the IRDAI
 End to the mis-selling of policies by the intermediaries
Before the role of the Regulator in the changed
 Insurers becoming more responsible for the acts of atmosphere, first let us discuss their present functions:
omission and commission by their representatives 1. Protecting the interests of the policyholders

R. Venugopal 2. Establishing the guidelines for the operation of the
insurers as well as the Brokers
Retired Executive Director of LIC of India
and Retired Chair Professor of the National 3. Specifying the Code of Conduct, qualifications and
Insurance Academy Pune. training for the insurance intermediaries

"For every minute you are angry you lose sixty seconds of happiness."

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