In view of the changing needs of the insurance sector, a comprehensive review of the legislative framework governing the sector has been done in consultation with IRDAI and the industry. To enhance insurance penetration, improve efficiency, and enable product innovation and diversification, the Ministry of Finance has proposed amendments to the Insurance Act 1938 and Insurance Regulatory and Development Authority Act, 1999.

The proposed amendments primarily focus on enhancing the promoting policyholders' interests, improving returns to the policyholders, facilitating entry of more players in insurance market leading to economic growth and employment generation, enhancing efficiencies of the insurance industry - operational as well as financial and enabling ease of doing business.

The proposal includes various measures such as opening up registration to various classes, sub-classes and types of insurers with appropriate minimum capital requirements as specified by IRDAI, allowing insurers to provide services that are incidental or related to insurance business as well as distribution of other financial products as specified by IRDAI, enabling newer channels of distribution, providing for efficient use of capital and resources, etc.

Given below is Performa in which comments are invited on the proposed amendments to the Insurance Act 1938 and Insurance Regulatory and Development Authority Act, 1999. The proposed amendments are highlighted in red text color for better understanding. Citizens can download the Performa and use same to submit their suggestions and feedback in a pdf format on MyGov platform.

The Insurance Act, 1938 : Performa for comments (Document - 132KB)

The Insurance Regulatory Development Act, 1999: Performa for comments (Document - 27 KB)

** Content marked in RED depicts changes
Last date of sending your suggestions on the above is 15 December 2022.