Insurance firms get into a huddle

The insurance industry is trying to get to grips with provisions in the proposed Insurance Amendment Bill, which gives additional powers to the Insurance Regulatory and Development Authority of India (Irdai), while there is ambiguity in the very definition of the insurance business, according to industry experts.

- AATHIRA VARIER

Apart from this, limits on the commission paid to intermediaries and restrictions on common directors are matters that are being examined.

Underthe proposed Bill, the revised definition of the business allows insurers to enter into non-insurance contracts. This has raised questions on whether the provision extends to non-insurance value-added services or is limited only to ancillary services.

Industry experts said the prohibition on there being common directors in insurance companies and banks or other financial institutions required clarity.