Why in News?
The Insurance Regulatory and Development Authority of India (IRDAI) approved a series of reforms to modernise the insurance sector and implement the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025.
Key Highlights
- Reforms aim to:
- Improve ease of doing business.
- Enhance insurance penetration.
- Strengthen governance and policyholder protection.
- Provide greater operational and financial flexibility to insurers.
- Liberalised norms for Investments. Capital infusion. Corporate restructuring. Transfer of shares and amalgamation of insurers.
- Policyholders’ Education and Protection Fund (PEPF) operationalised under Section 16A of the IRDA Act, 1999 to Promote insurance awareness. Improve grievance redressal. Trace unclaimed insurance amounts. Enhance policyholder services.
- Insurance intermediaries reforms:
- Mandatory tagging of the authorised salesperson with every insurance proposal and policy.
- Perpetual registration for intermediaries through an annual fee system, replacing periodic renewals.
About IRDAI
- Statutory regulator established under the IRDA Act, 1999.
- Regulates, promotes, and ensures orderly growth of the insurance sector.
- Headquarters: Hyderabad.
Prelims Facts
- IRDA Act, 1999 established IRDAI.
- PEPF aims to strengthen insurance literacy and policyholder protection.
- The reforms implement the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025.
[2019] In India, which of the following bodies/mechanisms review the functioning of independent regulators like PFRDA, IBBI, AERA, and PNGRB?
1.Ad Hoc Committees appointed by the Parliament.
2.Parliamentary Standing Committees.
3.NITI Aayog.
4.Financial Sector Legislative Reforms Commission (FSLRC).
5.Finance Commission.
Select the correct answer using the code given below:
[A] 1 and 2 only
[B] 1, 3, and 4
[C] 2, 4, and 5
[D] 2 only