Page 11 - The Insurance Times May 2025

ods, improving convenience and ensur- Vahak, and discussions on removing renewal premium increases signifi-
ing customer control over payments GST on health insurance, are all await- cantly exceeding 10%, depending on
during the proposal stage. ing leadership direction. Several corpo- claims experience. In some cases, pre-
rate leaders are reportedly interested mium hikes could rise as high as 60%.
IRDAI Chief Appointment in the top IRDAI post, but bureaucratic Typically, health insurance products
Delay May Stall Key Insur- traditions may continue to dominate undergo repricing every two to three
the selection process. years, while older policies are phased
ance Reforms
out within five to six years as healthier
The delay in appointing a new Chair- 10% Premium Cap for Se- policyholders exit and those with
person at the Insurance Regulatory niors Applies Only to New higher claims remain, leading to ad-
and Development Authority of India verse selection challenges for insurers.
(IRDAI) is raising concerns about pos- or Repriced Policies: IRDAI

sible delays in rolling out major re- The Insurance Regulatory and Devel- Flipkart Fined Rs 1.06
forms. opment Authority of India (IRDAI) has
Debasish Panda, who retired on March clarified that the recently introduced Crore by IRDAI for E-Com-
14, 2025, had initiated transformative 10% cap on annual premium hikes for merce Insurance Violation
projects such as Bima Sugam, a digital senior citizens' health insurance poli- The Insurance Regulatory and Devel-
insurance marketplace, and Bima cies will apply exclusively to new or opment Authority of India (IRDAI) has
Vistaar, a bundled low-cost insurance repriced products filed on or after imposed a penalty of Rs 1.06 crore on
product. January 31, 2025, according to sources Flipkart Internet Private Limited (FIPL)
familiar with the development.
"There are things at different levels of for breaching e-commerce insurance
implementation, which need the vision The clarification follows numerous in- distribution norms, according to an
of a Chairman to take them forward surer queries seeking guidance on the order dated April 7, 2025.
while the State lead insurer model, applicability of the rule, which aims to FIPL, which operated as a corporate
launched as part of the vision for 'In- shield policyholders aged 60 and above agent and Insurance Self-Network Plat-
surance for All by 2047', a brain child from steep renewal premium in- form (ISNP), was found redirecting us-
of Panda, has successfully taken off," creases. ers to insurance intermediaries' plat-
said the CEO of a private insurer.
However, existing health insurance forms through its "Buy Insurance" sec-
Key initiatives, including permitting products filed before the deadline are tion, violating IRDAI rules that allow
100% FDI in insurance, launching Bima exempt from this cap and could see ISNPs to integrate only with insurers
directly, not intermediaries.
Swaminathan S Iyer Appointed Whole-Time Mem- "Redirection of insurance traffic not
only blurs lines of responsibility but also
ber (Life) at IRDAI
exposes consumers to potential mis-
Swaminathan S Iyer has been appointed as a Whole-Time Member (Life) of
selling and lack of accountability," said
the Insurance Regulatory and Development Authority of India (IRDAI) for Dinkar Sharma, Company Secretary
five years, or until he reaches 62 years of age, whichever comes earlier.
and Partner at Jotwani Associates.
The Appointments Committee of the Cabinet (ACC) confirmed the appoint- Responding to the development, a
ment through an official order.
Flipkart spokesperson said, "Flipkart
Iyer currently serves as Executive Vice-President - Head of Legal, Company operates with a strong commitment to
Secretary, Regulatory Affairs, and ESG at Tata AIA Life Insurance. He previ- regulatory compliance and the highest
ously held the position of Senior Vice-President - Legal and Compliance and
standards of governance. We are cur-
Company Secretary at HDFC Standard Life Insurance.
rently evaluating the contents of the
Bringing over 34 years of experience in the life insurance industry, Iyer's order."
appointment is expected to bolster the regulatory body's capacity, espe- The penalty underscores IRDAI's focus
cially at a time when key initiatives are underway to transform India's in-
surance landscape and improve sectoral governance. on protecting consumers in digital in-
surance distribution.
The Insurance Times May 2025 11