Addressing the annual summit on insurance organised by the Confederation of Indian Industry, Rangachary said, "Indian standards and requirements are not going to be different from international standards. Solvency margins would be more or like what are available in UK or European Commission area. India should be in-sync with what is practised internationally."

The IRDA chairman said while the solvency margins provided in the proposed Act might look stringent, these were only the upper limits provided. "We will take into account the current international trends while fixing these margins," he said.

According to Rangachary, the legal and procedural aspects of IRDA would be separated. The legal aspect would be kept as a part of the basic Act whileIRDA would work on the procedural aspects. While the government will be left to issue directions on matters of policy, guidance of the sector with regard to grant of registrations, renewal of licences, areas of investment, notify solvency margins would be dealt with by IRDA.

Rangachary said the supervisory standards for the sector will also be "more or less in consonance with international standards."

IRDA chairman asserted that no outside agency would be given the task of framing regulations for the grant of licences to the new entrants in the insurance sector. He said these guidelines would be ready within 90 days of the passing of the Bill. He also ruled out one single authority like Finanical Services Authority (FSA) of UK to regulate all financial services including insurance. Insurance companies in India are not allowed to enter into the other areas of business.

On investment regulations for the insurance companies, Rangacharay said 60 per cent of the investible funds would have to be invested ingovernment or government-approved securities. IRDA would not allow insurance companies to invest in their group companies.

On the accounting procedures, an expert committee under the guidance of the Institute of Chartered Accountants has prepared draft standards. These standards will be in line with international trends, he said.

Rangachary said IRDA would have a fair degree of autonomy which would allow it to have an overwhelming influence on the insurance companies. However, IRDA would present an annual report to Parliament about the state of the industry and suggest changes in regulations, if required. There is also a provision for an advisory committee for suggesting regulations which would also have to be laid before the two Houses of Parliament.

Stressing that the underlying motto of the regulations would be customer satisfaction, he said "we will ensure a total surrender to the interests of the customer by the insurance companies."