The Union Cabinet is likely to consider the proposed amendments to the Insurance and IRDA Acts soon, sources tell CNBC-TV18. In November 2022 , the government in consultation with the insurance regulator had suggested key changes to both the Acts. Thereafter public comments were invited from stakeholders and recently the government finalised its draft amendments to both the Acts for Cabinet approval.

Sources indicate, significant changes to the proposed modifications in the Acts is unlikely and the Cabinet could consider the amendments in its next meeting or the one after that.

The government proposes to do away with the prescribed minimum capital requirements for life & non life companies from the Act and instead empower IRDA to decide varying levels of capital for companies.

Opening up registration to various classes, sub-classes , types of insurers is also proposed , thereby permitting composite, stand alone or other types of insurers to seek a licence . A composite licence would mean an insurer can offer both life cover and whole/any part of non life insurance like motor or health insurance .

Concept of captive insurers is also proposed in the amendments wherein Industrial houses can set up own insurance cos catering to their biz

Insurers will also be allowed to earn from value added services related or incidental to their businesses .

The government aims to table the insurance and IRDA amendment bill in the current session of Parliament.

First Published:Mar 15, 2023 11:46 AM IST