Hyderabad, March 10
THE Insurance Regulatory and Development Authority (IRDA) has decided to constitute a committee to study the report of the Law Commission on amendments to the Insurance Act and make recommendations accordingly.
According to the IRDA Executive Director, Mr K. Subrahmanyam, the Law Commission has submitted a report to the Government indicating the amendments to be brought about in the Insurance Act, 1938 keeping in view the developments that have taken place, especially the passing of the IRDA Act, 1999.
While the Commission has made specific recommendations in areas that relate to legal issues, it felt that in respect of a few areas a detailed examination by experts in its respective fields would be necessary to consider any changes.
The subjects that were covered by this observation include provisions relating to investments (Sec 27, 27A & 27B), sufficiency of assets (Sec 64 VA), insurance surveyors (Sec 64UM), Tariff Advisory Committee (Sec 64UA & 64 ULA) and shareholders' funds and policyholders' funds (Sec 49).
To examine these issues, the IRDA has constituted the Committee headed by Mr K.P. Narasimhan. The members of the Committee include Mr S.V. Mony, Mr N.M. Govardhan, Mr K.N. Bhandari, Mr P.C. Ghosh, Mr Liyaquat Khan, Mr S.P. Subedhar, Mr D.D. Rasgotra, Mr K.C. Misra, Mr T.S. Vishwanath and Mr Varadarajan.
The IRDA Executive Director informed the industry stakeholders through a circular that the committee would also indicate any other sections of the Insurance Act, 1938 which need to be amended in the light of the developments that have taken place in the insurance scene other than those covered by the Law Commission's recommendations. The committee has been requested to furnish its recommendations by April-end, he said.