More amendments likely to the Insurance Bill

The Select Committee on the Insurance Bill is expected to propose four amendments to the Bill, including enhancing the minimum capital for health insurance companies and compulsory provision by insurers for agent commissions.

The Committee completed its discussions on all clauses of the Bill and, at a meeting held here on Wednesday, decided to submit its report two days ahead of its December 12 deadline.

The panel, headed by BJP leader Chandan Mitra, may also suggest enhancing the minimum capital for health insurance companies from ₹50 crore to ₹100 crore. It is also recommending that fresh shares should be issued during the sale of shares of Indian companies to a foreign owner so that FDI helps in capital enhancement.

Another idea is to make a compulsory provision for commissions to be given to agents by insurers.

“This is to help lakhs of insurance agents in the country,” a panel member told BusinessLine.

The Committee wants the report of independent surveyors to be made mandatory for settling the claims over ₹ 20,000 — a provision that was part of the original Bill.

The Committee is, however, likely to add that as the rate of ₹20,000 was decided much earlier, the IRDA may prescribe a new limit in this regard.

“The panel has sought the assistance of the Finance Ministry, the Law Ministry and SEBI to include this amendment to the Bill we are going to table in Parliament,” the member said.

The Committee witnessed a heated debate on submission of the report as the Opposition members insisted they needed more time to study the draft report, which is likely to be circulated on Friday.

The Chairman, however, said the panel had a deadline to adhere to, and the members could submit dissent notes along with the report.

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