Insurance Bill

The Insurance Bill passed in March 2015 in both the houses is expected to have a deep impact on the Indian Insurance Bill industry. Much anticipated and awaited, this amendment offered a bunch of benefits to both the Insurance Bill Company and the policy holder. Enlarge power to regulatory bodies, more protection to policy holders and enlarge level of foreign speculation in the sector are some of the key characteristic of the Insurance Bill.

Listed here are some major highlights of the bill and how they can affect you:

Increased Foreign Investment of the insurance Bill

The new revision allows up to 49% foreign speculation in Indian Insurance Bill companies from now onward. This increased capital flow is expected to reinvigorate the industry all together. The national players now will be able to invest in new products and expand their portfolio manifold for insurance bill.

What does this mean to you: how is this going to effect you as a policy holder? Well, at a glance it may seem of no significance at all, but increased foreign participation means, increased competition, wider product range and more professionalism.

An Empowered IRDAI of the Insurance Bill

 This act goes a lengthy way in strengthening the fist of IRDAI. This governing body will now onward be involved in the grass root level, such as appointing insurance Bill agents and monitor their eligibility, capability and professionalism.

Also this controlling body is now authorize to regulate the key areas of Insurance Companies such as expenses, investments, commissions payable to agents, code of conduct etc.

What does this mean to you: This enhanced power to IRDAI is sure to curtail many malpractices that are rampant today in Insurance market in India. So, as a policy holder your money will now be safer than before.

Consumer safety of the Insurance Bill

Indian Insurance market was never as safe as it is now from consumers point of view. If you are worried about being misled by the insurance agent, then this act will give you peace of mind. In an attempt to curtail the wrongdoing, the new revision levies penalty fluctuate from INR 1 Crore to INR 25 Crore on any Insurance Company that indulges in mis-selling and misrepresentation.

Health Insurance of the Insurance Bill

Health insurance Bill in India never quite received the status of a separate business vertical. But this Insurance Bill identified and addressed the problem. The amendment defines “Health Insurance bill Business” in full details and includes personal accidental coverage and accidental coverage while traveling in it.

What does this mean to you: This move will definitely forge a path for many robust insurance products related to health. Insurance bill must be in one year.

Thus opening up the re-insurance chance will conduct in knowledge and skill from the international players as well as make the insurance companies much more firm.

With all this key points, the Insurance Bill, 2015 was robust and actually could stand up to most of the expectations.

 

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