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IRDA
fixes 26% cap for foreign stake in TPAs
Our Bureau
Mumbai, Aug 31: The final regulations on third party
administrators (TPA) by the Insurance Regulatory and Develoment
Authority (IRDA) has allowed only 26-per cent foreign stake
in a domestic TPA.
| LIC to generate
Rs 50,000 crore of investible fund |
Going by the current high growth, the
state-owned life insurance behemoth, Life Insuarnce Corporation
will generate Rs 50,000 crore of investible fund during
the current year, said GN Bajpai, chairman, Life Insurance
Corporation.
Bajpai, while addressing the CEO panel in ‘Insurance Forum
-2001’ along with Mrs Sikha Sharma, chief executive officer,
ICICI Prudential, and Micky Brgg, managing director, Royal
Sundaram said that the Corporation life fund has reachecd
Rs 1,94,000 crore during 2000-2001 and it is targetting
a minimum 20 per cent growth during 2001-2002. He said
the Corporation is planning to raise its capital from
Rs five crore to Rs 100 crore by transfering funds from
its reserves. |
HO Soniq, member, IRDA has said that IRDA
has confirmed the finalisation TPA regulations after much
debate and deliberations.
The provision for the 26-per cent foreign stake in any domestic
TPA is on the lines of the statutory requirements 26 per cent
of foreign stake for any domestic insurance company, said
the sources.
Soniq who was in the city on Thursday to inaugurate a day
long conference- Insurance Forum 2001-organised by The Financial
Express, Royal Sundaram Alliance and Asia Insuarnce Post,
had said that the IRDA through its life insurance council
will put in place code of conduct for the new and existing
life insurance companies. ‘‘Life insurance council is meeting
next week to finalise the guidelines,’ he said. Also, the
IRDA has ensured that the award of the insurance ombudsman
is binding on all the insurance companies, he revealed
Mr Soniq expected that health insurance schemes may be more
cusmer friendly in days to come.
According to him health care insurance in the country is the
most underdeveloped segment of the insurance industry.
India spent about 4.5 per cent of GDP on health or about $
18 per capita in 1996, below the average of 5.6 per cent for
low and middle-income countries. The domestic health care
economy is currently estimated at $ 17 billion.
Further, Mr Soniq announced that IRDA is preparing a road
map of guidelines for pension sector in India to exploe possibilities
of its all round development by introducing more such schemes.
The draft on pensions reforms may be submitted to the Government
in September/October, 2001. The IRDA may consider mutual funds
also to enter pension business. ‘‘We intend to intensify competition
and ensure higher coverage of pensions especially in the unorganised
and private sectors.
Speaking on the occasion, Dr PS Pritam, consultant, sales
and marketing, Allianz Bajaj Life Insurance, commented that
the growth of the new insurance companies are very slow. However,
Mr Vijaya Singh, managing director, Birla Sun Life Insurance
Company said that his company will take another six months
to set up a full fleged operation.
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