``In the long run we will would like to have one comprehensive act governing the whole insurance sector,'' revealed Chaturvedi. At present, the Government is able to amend these acts by adding more and more schedules which should be avoided, he said.

According to him Insurance Regulatory and Development Authority would have an autonomous role of facilitating administrative and technical decisions, while the Government's role would be restricted to taking up policy issues like inadequate coverage of geographic areas and social commitments, he added.

Chaturvedi said that there would not any problem in the transaction of the insurance products on the Internet in the future as the forthcoming Information Technology Act will be address all these issues. About the capitalisation of the Life Insurance Corporation and general insurance subsidiaries, Chaturvedi said that LIC will not be required to boost its capital since it is governed by separate statute whereas general insurance subsidiaries have to expand their capital to Rs 100 crore for undertaking general insurance business.

He reiterated that Indian promoters who are allowed to hold over 74 per cent stake initially will have to finally reduce to their stake to 26 per cent in the long run.

``Disinvestment processes of the company which was rigid in the original act has been simplified in the new act,'' he said.

IRDA will come out with new investment guidelines for the insurance industry, he added. Under the liberalised insurance regime there would be no limitations on the number of players who could take part in the business, Chaturvedi said. Member of the IRDA, H Ansari, said plans are afoot to come out with advertisement guidelines to protect ``gullible investors'' against ``false'' claims that may be made by insurers to garner business.

Referring to the competition on the pricing front Ansari said that there should not be any discrimination in price or availability between policy holders who present the same general degree of risk. Assuring right kind of regulation to establish professional conduct standards and acceptable industry practices Ansari said regulations governing insurance business, which is being formulated by the Institute of Chartered Accountants of India and the Actuarial Society of India, would be unveiled in April.

He indicated that registration of the insurance companies will start from June and by October the first company would have received its licence. Pointing to the potential of insurance business in the country, Ansari said, by 2005 life insurance business would treble to Rs 60,000 crore and non-life would touch Rs 20,000 crore. By 2010 the figure for life is expected to cross Rs 140,000 crore while that for non-life Rs 40,000 crore.

Rajendra Chitale, managing partner of accounting firm MP Chitale & Co., explained that the life insurance segment was very simple and there was no need for a foreign partner and only the general insurance business with its diversity of product offerings like fire, motor, house, factory required a foreign partner.

He felt the RBI would do well to consider dilution ofsome of the draft guidelines for the entry of banks into the insurance sector as the profit record norm in the previous three years before applying for registration and capital adequacy norms were very stiff.

``Weak banks which only want to be intermediaries in theinsurance business for diversifying their range of services would be left out due to the RBI norms'', he said.