Tax sops may boost sagging insurance sector in 2013
Echoing similar views, Reliance Life Insurance, President and Executive Director Malay Ghosh said: "We hope to see several enabling regulations, as mentioned by the Finance Minister, in the next few months to drive stable growth for the industry in the coming years."
The key initiatives expected by the industry include bancassurance, open architecture, use and file product approval process and simplifying agency licensing process.
During 2012, the Cabinet approved the much-delayed Insurance Bill, for approval and passage in Parliament so that foreign investors can pump in more funds into the capital intensive sector.
The government had introduced the Insurance Bill in the Rajya Sabha in December 2008 to improve and revise laws relating to the sector in the wake of private participation.
The insurance amendment Bill is an omnibus legislation to change parts of three Acts: Insurance Act, 1938; Insurance Regulatory and Development (Irda) Act, 1999, and General Insurance Business Nationalisation Act.
In order to ensure that life insurance products are designed by companies to meet best interest of policyholders, Irda is working on draft guidelines on the subject. The
regulator is expected to come out with guidelines soon.
Besides, the regulator issued draft norms for initial public offering (IPO)- Irda (Issuance of Capital by General Insurance Companies) Regulations, 2012.
As per the draft norms, the regulator will take intoaccount the insurer's financial position, its capital structure and regulatory record before the share sale.
In order to ensure solvency of insurance companies, Irda
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