COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

IRA chief allays Indian investors' fears over foreign equity

Insurance Regulatory Authority chairman N Rangachary has allayed fears about security for investments made in insurance sector following the opening up for foreign participation.

Addressing the Federation of Karnataka Chambers of Commerce and Industry in Bangalore on April 21, he said the 26 per cent restriction for equity participation, provision to plough back the premia collected within the country itself and solvency stipulation laid to declare solvent throughout the period of its existence, were adequate enough to safeguard the interests of the investors in the country.

Strong international players would not be permitted in the insurance sector. Apart from this, transfer of over and above one per cent of the equity holdings also would require prior approval from the IRA, he added.

Rangachary said though the insurance sector was a service industry, the presence of international companies would help local professionals gain world-class expertise by introducing the best global practices.

Competition would also develop a better understanding of consumer requirements leading to more customised products. This will help the consumer to choose the best available scheme in a competitive environment, he added.

He also called for more transparency in the functioning of the insurance sector.

He said the IRA had suggested a bill to the Union government for regulating the functioning of surveyors.

He warned that transporters might have to be charged more premium, as suggested by the traffic advisory committee, if cases filed against insurance companies by transport owners were not withdrawan as agreed upon.

The hike in premium for third party insurance should have actually come into effect during this year. But it was withheld following an assurance from transporters that all cases would be withdrawn and no fresh cases would be filed.

UNI

IRA seeks to inject professionalism in insurance sector

Business news