Latest news with #DineshKhara
Yahoo
18-07-2025
- Business
- Yahoo
IRDAI panel reportedly opposes insurance, non-insurance company mergers
A panel set up by the Indian insurance regulator has advised against mergers between insurance companies and non-insurance entities, CNBC-TV18 reported. This advice was given following consideration of potential risks to policyholders that such mergers could entail, the report said, citing sources. The committee, headed by Dinesh Khara, former chairman of the State Bank of India, submitted a confidential report to the Insurance Regulatory and Development Authority of India (IRDAI). The report was part of the panel's remit to propose amendments to the Insurance Act, 1938, which also included discussions on increasing the foreign direct investment limit to 100% and the introduction of composite licences, the report added. The panel's recommendation comes against the backdrop of the Indian Government's consideration of the Insurance Amendment Bill, which had proposed allowing such mergers. If the IRDAI adopts the panel's advice, it could impact ongoing merger plans such as the one between Max Financial Services and Max Life Insurance. Furthermore, the IRDAI has formed panels of whole-time members to ensure adherence to regulatory norms by insurers and intermediaries, reported PTI. "As part of enforcement function, to decide on the violations observed as regards the provisions of Insurance Act and Regulations issued thereunder, with respect to certain Insurers/Insurance Intermediaries, panels of Whole-Time Members were formed." Recently, reports emerged that the Indian Government is planning to place the health insurance claims portal under the Finance Ministry and IRDAI to tackle hospital overcharging. This is to address findings from government and IRDAI analysis that show hospitals are inflating treatment costs, especially for patients with higher insurance coverage. "IRDAI panel reportedly opposes insurance, non-insurance company mergers " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Business Standard
17-07-2025
- Business
- Business Standard
Irdai panel flags risks in merging insurers with non-insurance firms
A panel set up by the Insurance Regulatory and Development Authority of India (Irdai) has advised against allowing mergers between insurance companies and non-insurance businesses, CNBC-TV18 reported. The panel, led by former State Bank of India Chairman Dinesh Khara, flagged potential risks to policyholders if such mergers are permitted. The Khara-led panel submitted a confidential report to Irdai, warning that such mergers could pose potential risks to policyholders, the news report said. Panel to draft FDI reform plan In February 2025, the Irdai formed a seven-member committee to evaluate proposed changes to the Insurance Act, 1938. The panel was formed to draft a framework for implementing these amendments, the news agency PTI had reported. Among the key proposals was raising the foreign direct investment (FDI) limit in the insurance sector to 100 per cent. Finance Minister Nirmala Sitharaman had announced in her Union Budget on February 1 that the increased limit would apply to companies that invest the entire premium in India. 'The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified,' she said. The committee includes former ICICI Prudential Life MD and CEO NS Kannan, ex-United India CMD Girish Radhakrishnan, former Irdai member Rakesh Joshi, former RBI Executive Director Saurabh Sinha, MFIN MD and CEO Alok Misra, and legal expert L Vishwanathan. Revamp may allow full FDI, expansion The revised Insurance Act is expected to include provisions related to 100 per cent FDI, composite licences, increased penetration, and entry of new players. The committee will recommend regulatory frameworks and rules to operationalise these changes. To implement these reforms, amendments are also expected in the Life Insurance Corporation Act, 1956, and the Irdai Act, 1999. Irdai sets up panels for oversight The insurance regulator has constituted panels comprising its whole-time members to investigate regulatory violations by insurance companies and intermediaries. This move was approved during the 132nd meeting of the authority, Irdai said in a statement issued on Tuesday. 'As part of enforcement function, to decide on the violations observed as regards the provisions of Insurance Act and Regulations issued thereunder, with respect to certain Insurers/ Insurance Intermediaries, panels of Whole-Time Members were formed,' the regulator said. The decision comes amid ongoing concerns about data breaches and mis-selling of insurance policies within the sector. Additionally, the regulator announced the formation of a separate panel of whole-time members to handle specific cases related to share transfer applications and other associated matters. This is part of the authority's effort to delegate powers and streamline regulatory processes. (With agency inputs)
