The Insurance Regulatory and Development Authority of India (Irdai) had issued MISP guidelines in 2017 with the intention of streamlining the process and bringing the practices of vehicle insurance, being sold by automotive dealers under the provisions of the Insurance Act, 1938.
Life insurance penetration in the country is 3.6 per cent of the GDP, way below the global average of 7.13 per cent, and in case of general insurance it is even worse at 0.94 per cent of GDP, as against the world average of 2.88 per cent.
A committee appointed by insurance regulator IRDAI has recommended that traffic violations be linked with motor premiums to encourage better road sense. The report published Monday by the nine-member working committee suggested inserting “Traffic Violation Premium” to the ambit of motor insurance.
“Health Insurance in India has grown significantly in recent years and is expected to continue in the coming years,” the regulator said in an order released on Wednesday. The move comes at a time when the government is mulling ways to improve penetration of health insurance in India, which at less than 4% of the GDP is below par compared to most advanced and emerging economies.
The country's largest life insurer LIC contributed Rs 14,345.70 crore or 58 per cent to the total premium generated during the month, showed data from the Insurance Regulatory and Development Authority of India (Irdai).
The Life Insurance Council is lobbying for a lower rate of GST ahead of the union budget, from the current 18% to the 5% slab for protection-based services, arguing that it is not a luxury consumption item.
Globally, money that has been coming in has been pension money. So, whether it is from funding or retirement planning perspective, these are the two markets close to insurance that have a lot of tailwind, said Shikha Sharma, Founding MD, ICICI Prudential Life
"This has been an unprecedented year. The industry is likely to remain flattish. However, we will stay ahead of the industry. In the first half our additional premium had grown by 16 per cent," Kotak Mahindra Life Insurance MD & CEO G Murlidhar said.
Come 2020, she is selling lakhs of insurance policies at the tap of an app on mobile phones and all it takes is a few minutes to mail the policy document instead of weeks of wait for the policy to arrive by the unpredictable India Post to shove it to safety in the steel cupboard.
The tribunal, which hears appeals on securities, pension and insurance related matters, said that IRDAI ‘totally failed’ to exercise its regulatory powers and was instead acting as a ‘postman’ in the case.