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.