ns ran e in ndia 13.11
set up branches in India and defines ‘re- an operational framework for greater innovation,
insurance’ to mean ‘the insurance of part competition and transparency, to meet the
of one insurer’s risk by another insurer insurance needs of citizens in a more complete
who accepts the risk for a mutually and subscriber-friendly manner. The amendments
acceptable premium’, and thereby are expected to enable the sector to achieve its
excludes the possibility of 100 per cent full growth potential and contribute towards the
ceding of risk to a re-insurer, which overall growth of the economy and job creation.
could lead to companies acting as front
companies for other insurers. new insurance schemes
(vii) Strengthening of Industry Councils: The
Life Insurance Council and General During the fiscal 2015–16 , the Government
Insurance Council have now been made of India launched two new insurance schemes
self-regulating bodies by empowering them aimed at creating a universal social security
to frame bye-laws for elections, meetings system for all Indians, especially the poor and the
and levy and collect fees, etc., from its underprivileged. Salient features of these schemes
members. Inclusion of representatives of have been briefly discussed below:
self-help groups and insurance cooperative PMSBY (Pradhan Mantri Suraksha Bima
societies in insurance councils has also been Yojana): It offers a renewable one-year accidental-
enabled to broad base the representation death-cum-disability cover to all subscribing
on these Councils. bank account holders in the age group of 18 to
(viii) Robust Appellate Process: Appeals against 70 years for a premium of Rs. 12 per annum per
the orders of IRDAI are to be preferred subscriber.
to SAT as the amended law provides for The risk coverage available will be rupees two
any insurer or insurance intermediary lakh for accidental death and permanent total
aggrieved by any order made by IRDAI disability and rupees one lakh for permanent
to prefer an appeal to the Securities partial disability, for a one-year period stretching
Appellate Tribunal (SAT). from 1 June to 31 May.
Thus, the amendments incorporate PMJJBY (Pradhan Mantri Jeevan Jyoti Bima
enhancements in the insurance laws in keeping Yojana): The scheme offers a renewable one-year
with the evolving insurance sector scenario term life cover of rupees two lakh to all subscribing
and regulatory practices across the globe. The bank account holders in the age group of 18 to 50
amendments will enable the regulator to create years.