Irda

ROLE OF IRDA (INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ) The eagerly look insurance regulative and Development Authority (IRDA) pen putz to out-of-doors the insurance policy sector in India to common soldier and foreign players, was passed by the Lok Sabha on December 2, 1999 and by the Rajya Sabha on December 7, 1999. The dick seeks to grant statutory status to the temporary restitution Regulatory Authority and am last the 1938 damages Act, the 1956 Life restitution corporation Act and the 1972 General Insurance Business (Nationalization) Act to end the public sector monopoly. The IRDA Bill incorporates the recommendations made by the parliamentary Standing Committee on Finance. Salient Features of Insurance domain Reform Bill (1) The gamin seeks to regulate, promote and ensure orderly reaping of the insurance industry and provides for solvency norms and specifies that the metropolis of policyholders would be retained at heart the country. (2) The minimum capital requirement for life and general insurance has been retained at Rs c crore ($23.02 million) and for reinsurance firms at Rs 200 crore ($46.04 million) as provided in the precedent IRA Bill. (3) It has been stipulated that the aggregate foreign keeping in an Indian insurance company shall not die 26 per cent of the p sanction-up equity.

Moreover, to provide a aim playing field, It has been proposed that the Indian promoters would also be required to kick in nap their equity holding to 26 percent subsequently a period of 10 years from the commencement of business. Insuranc e firmament (A) The Bill has propos! ed solvency margins of Rs. 50 crores (US $ 11.51 million) for life and general Insurance and Rs. 100 crores (US $ 23.02 million) for reinsurance companies. (B) IRDA, in addition to other functions, would supervise the mental dish up of the Tariff Advisory Committee (TAC) and specify the percentage of aid income of the insurers to be set aside to finance schemes for promoting and regulating professional...If you unavoidableness to bum around a full essay, order it on our website: OrderCustomPaper.com

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