Page 215 - Ebook health insurance IC27

Sashi Publications

remains the core of insurance laws for the country. The regulatory structure
structures underwent several changes, particularly due to two main events :
(i) Nationalization - The life Insurance was nationalized in 1956 , and Nonlife
Insurance in 1973, where the large number of erstwhile private insurers were
nationalized and merged into one Life Insurance Corporation and one General
Insurance Corporation (with 4 subsidiary companies), owned by the Government
of India.

(ii) Reforms - Malhotra Committee, committee on Reforms, in 1994 produced a
report on Insurance Industry, which led to the establishment of the Insurance
Regulator(interim regulator in 1996, statutory authority in 2000), andfinally opening
up of the market to a new generation of private players since Aug,2000.

The insurance industry , is thus, governed by Insurance Act, 1938, General
Insurance Business Act, 1972, Life Insurance Corporation Act, 1956, and IRDA
Act 1999. IRDA plays both the roles of regulatory authority, and developer, which
was established in the preamble of IRDA Act, Section 14 of IRD Act, and Section
3(2AA) of Insurance Act 1938.

As Health Insurance in India is still in developmental stage, the role of IRDA is
very crucial in preventing an adverse consequences of the health for cost of care,
equity, consumer satisfaction, fraud and ethical standards.

Q8. Discuss the Role of Regulators in respect of the following :
(a) Policy Holder Protection regulation and grievance redressal - IRDA plays a

vital role in the protection of interests of all the stakeholders of insurance, viz.
policyholders, insurers, insurance intermediaries, etc. Insurance being a contract
of Utmost Good Faith, IRDA facilitates transparency and fair business practices

Website : www.bimabazaar.com, PH: 033 22184184/40078428 219