Page 21 - India Insurance Report 2023- BIMTECH
P. 21
India Insurance Report - Series II 9
A Transformative Agenda for Indian
Insurance: The Required Legal and
Regulatory Changes
- Arun Agarwal
3 Author, Trainer, Media Columnist and former CEO
- Dr Abhijit K. Chattoraj
Chartered Insurer, Dean and Professor, Birla Institute of Management Technology
- Sakate Khaitan
Senior Partner, Khaitan Legal Associates
1. Introduction
The Government’s Legislative and Regulatory Agenda, to cater to an inclusive and fully penetrated
insurance, would call for the adherence to the following principles:
1. Principles Based Primary Legislation that aligns the objectives across related streams and prudently
avoids being overly specific in the primary legislations;
2. Strategic approach to set new directions, empowering regulator with adequate powers to conduct
insurance supervision through principle-based secondary legislations/regulations, and allowing the
flexibility to respond to the dynamic supervisory environment encountered;
3. Regulatory Accountability to promote effective and globally consistent supervision of the insurance
industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and
protection of policyholders.
2. Amendments to Insurance Laws
Keeping in view the above principles enshrined in point 1, certain thoughts are discussed here:
a. Protection of Policyholders’ Interests
The current IRDAI Mission to “protect the interests of the Policy holders, to regulate, promote and
ensure orderly growth of the insurance industry and for matters connected therewith or incidental
thereto” needs to be aligned with the International Association of Insurance Supervisors (IAIS) mission
whose approach is similar to the one recommended by the Law Commission:
