New Insurance Rules

To boost Insurance penetration (4.2% compared to the world average of 6.3%) in India, the government has notified six new rules of Insurance Regulatory and Development Authority of India (IRDAI).

• Insurance penetration refers to total insurance premiums to Gross Domestic Product (GDP) in a year.

Key Highlights of New Rules: A Corporate Agent can tie up with 9 insurers and Insurance Marketing Firms can tie up with 6 insurers.

• Raises Regulatory Sandbox (RS) experimentation period from 6 months to up to 36 months.
• The requirement of prior approval from IRDAI for raising ‘Others form of Capital’ is dispensed with.
• The period for considering State/Central Government premium dues for calculation of solvency position has been increased from 180 to 365 days.