Mumbai, June 30 (IANS). Insurance regulator Insurance Regulatory and Development Authority of India (IRDAI) will soon issue new guidelines to curb mis-selling of insurance products by banks. This information was given by IRDAI Chairperson Ajay Seth while talking to the media during a program on Tuesday.
He said that the objective of the regulator is to ensure that insurance products are provided to the customers as per their need and eligibility.
Ajay Seth said that the ‘Bima Sugam’ digital platform is likely to be launched by September 2026. Motor insurance will be provided on this initially. After this, health insurance and then term life insurance will also be added to it.
Bima Sugam aims to make the process of purchasing insurance simple, transparent and digital.
After the government allowed 100 per cent foreign direct investment (FDI) in the insurance sector, a foreign insurance company has been given approval to increase its stake in an Indian life insurance company, while another proposal is still in the review stage, the IRDAI chief said.
Recently, the Central Government had issued a notification approving 100 percent FDI in the insurance sector under the automatic route. However, this will require compliance with the provisions of the Insurance Act, 1938 and the approval of IRDAI.
The government has clarified that separate arrangements will continue for Life Insurance Corporation of India (LIC). The maximum limit of foreign investment in LIC will be only 20 percent and this will also be under the automatic route.
Under the new regime, 100 per cent FDI has also been allowed in insurance intermediaries like insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrators (TPAs), surveyors, loss assessors, managing general agents and insurance repositories.
Ajay Seth said that IRDAI will soon bring a product suitability framework for the sale of insurance products.
He said that instead of imposing strict restrictions in this matter, the regulator will issue guiding principles, so that suitable insurance products can be sold to the customers as per their needs.
IRDAI has also recently tightened the rules related to salary and bonus of top executives (Key Management Personnel – KMP) of insurance companies.
Now their incentives and bonuses will be linked to parameters such as speed of claim settlement, resolution of complaints, performance of products and quality of customer service.
Apart from this, recently IRDAI has also granted license to a new general insurance company, which is the second new license given in recent times.
–IANS
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