A Year Of Hope With A Twist For Insurers

The fair trade regulator also said the move of the government-owned non-life insurers was against the prevailing worldwide practice to keep the claims processing agency independent from the insurance companies.

On the life insurance side, the players launched new products aligned with the new regulations, though overall growth was in the negative region during the year.

"However the new product launches were stymied owing to IRDA's decision to approve only up to five products for an insurer in a year," a senior official of a life insurance company told IANS, preferring anonymity.

The year also saw the central government levy a two percent tax deduction at source on some insurance payouts.

To increase the number of intermediaries the IRDA came out with its draft regulations for insurance marketing firms (IMF) while a committee has proposed multiple corporate agencies (MCAs).

Also, the Pension Fund Regulatory and Development Authority (PFRDA) is finalising various regulations following the notification of the Pension Fund Regulatory and Development Authority Act in February.

Highlights:

* BJP-led central government decides to increase FDI in insurance to 49 percent but the insurers are to be Indian-owned and controlled

* Health Insurance TPA of India - the common health insurance claims processing company for four government-owned non-life insurers licensed by IRDA

* Aditya Birla group announces its decision to foray into health insurance sector; Kotak Mahindra Bank gets Reserve Bank of India's permission of enter non-life sector

*IRDA continued to penalise insurers for violating its regulations and for not settling claims.

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