Page 57 - Insurance Times June 2024

thority of India (Expenses of Management, including Following the recent policyholder centric developmental
Commission, of Insurers) Regulations, 2024 were notified reforms covering the regulatory framework applicable to
on 23rd January, 2024. In order to supplement the regu- insurers similar reforms are underway in the insurance in-
lations, this Master Circular is issued under section 34 of termediation landscape.
the Insurance Act, 1938, section 14 of the IRDA Act, 1999 Towards this, IRDAI convened a landmark first-of-a-kind two-
and Regulation 23 of the Insurance Regulatory and De- day interactions "Bima Vitarak Manthan" on May 9th and
velopment Authority of India (Expenses of Management, 10th, 2024 at its head office in Hyderabad. The event
including Commission, of Insurers) Regulations, 2024. brought together key intermediaries, including brokers,
2. The title of this Master Circular shall be “Master Circular corporate agents (Banks, NBFCs, Others) and Insurance
on Expenses of Management, including Commission, of Marketing Firms (IMFs) for extensive deliberations on the
Insurers, 2024”. future of insurance distribution in the country.
3. This Master Circular is applicable to life, general and Over the course of two-days, participants engaged in con-
health insurers. This Master Circular shall come into force structive discussions centered on driving multi-faceted re-
from the date of issuance. forms in the distribution landscape. IRDAI unveiled its vision
of instituting principle-based regulations for the operations
This has approval of the Competent Authority.
of intermediaries effectively, enhancing their role in facili-
Master Circular on Registration, Capital tating greater access to insurance for all segments of soci-
ety. The Chairman, IRDAI emphasized on creating an insur-
Structure, Transfer of Shares and Amal- ance ecosystem which is highly sensitive to the needs of the
gamation of Insurers, 2024 policyholders propelling towards “Zero Friction, Zero Pain-
points and Zero Complaints” environment.
Date: 15th May, 2024
Focussed strategies to make insurance widely available, eas-
1. The Authority has notified the IRDAI (Registration, Capi- ily accessible and affordable took the centre stage. Emphasis
tal Structure, Transfer of Shares and Amalgamation of was laid on insurance intermediaries reaching out to the pros-
Insurers) Regulations, 2024 (herein after referred to as pects and the policyholders to assess their needs and require-
“Registration Regulations, 2024”). In exercise of the ments; and partner with insurers to bring about insurance
powers conferred by section 34 of the Insurance Act, products tailored to the diverse needs of the population in
1938 (hereinafter referred to as “the Act”), section 14 terms of various age groups, income groups, occupational
of the IRDA Act, 1999 and Regulation 59 and 60 of Reg- groups, gender and region-specific products. New products
istration Regulations, 2024, the Authority hereby issues such as Title Insurance and Surety Insurance were also high-
this Master Circular to specify various forms as referred lighted, with the intention of increasing their uptake.
in the Registration Regulations, 2024 and to provide clari- Measures to address mis-selling and force selling were de-
fications on various provisions of the Registration Regu- liberated along with having an effective grievance redressal
lations, 2024.
mechanism in place. Continuous training for sales force and
2. This Master Circular shall be applicable to all Insurers (ex- the adoption of best practices from the global insurance
cluding Foreign Reinsurer’s Branches) and applicants seek- landscape were recognized as vital for the sustained growth
ing registration to carry on insurance business. of the industry.
3. This Master Circular shall come into force from the date It was highlighted that the readiness of distribution chan-
of its issuance. nels to embrace technology could bring about explosion in
4. This has approval of the Competent Authority. the distribution space which can result in reduction of dis-
tribution costs benefiting the policyholders. Detailed discus-
Bima Vitarak Manthan sions were held on leveraging proposed insurance e-market-
place – Bima Sugam in taking the insurance to the last mile.
Date: 10th May, 2024 Bima Vitarak Manthan would be a periodic meeting serving
The Insurance Regulatory and Development Authority of as a platform for continuous engagement with various inter-
India (IRDAI) is at the forefront of spearheading transfor- mediaries, having meaningful interaction, sharing of insights
mative reforms in the Indian insurance sector, all as part of and exploring innovative strategies and collaboration.
its larger vision of "Insurance for All by 2047" aiming to take The forum concluded on a high note, with all participants
insurance to each and every Individual to provide them com- expressing optimism and a commitment to work towards
prehensive financial protection and security. the shared goal of achieving Insurance for All by 2047.

52 June 2024 The Insurance Times