Irda sets up panels on IT, Insurance Act

Mumbai, March 24 | Updated: Mar 25 2005, 05:30am hrs
The Insurance Regulatory & Development Authority (Irda) has constituted two top-level committees for bringing in IT culture in the liberalised insurance industry and to suggest a modification to certain areas in the Insurance Act, 1938.

While the IT committee will be headed by the chairman of Irda, CS Rao, the committee constituted on the Insurance Act 1938 is divided into different groups.

Professionals like KP Narasimahan, TS Vishwanth and SP Subhedar will deal with investment distribution of surplus. SV Mony and PC Ghosh, both former chairmen of General Insurance Corporation (GIC), will handle the matters relating to Tariff Advisory Committee (TAC).

On IT issues in the insurance industry, Irda says that the level of information technology currently, is diverse across the companies. Though companies individually are making full efforts to upgrade their IT levels, it is important that the ongoing developments in software and hardware need to be recognised while designing their IT policies.

The vertical connectivity of information from branch office to head office and from head office to TAC/Authority is also necessary in order to derive more power at lower cost while accessing and transferring data.

In order to frame well-designed policies for the insurance industry, the authority is looking towards academics, practitioners and experts in the field of IT and insurance.

Some of the other members of the committee are Vepa Kamesam, former deputy governor of Reserve Bank of India, chairman of the Life Insurance Corporation chairman of Oriental Insurance Corporation.