Dinesh Khara Committee

Dinesh Khara Committee Latest News

The Insurance Regulatory and Development Authority of India (IRDAI) recently set up a seven-member committee headed by former chairman of SBI Dinesh Khara to examine proposed amendments to the Insurance Act, 1938, and suggest a framework for its implementation. 

About Dinesh Khara Committee

• It is a high-powered seven-member committee set up by the Insurance Regulatory and Development Authority (IRDAI). 
• Purpose: To review proposed amendments to the Insurance Act of 1938 and recommend a regulatory framework for their implementation.
• The committee is formed as the Union government prepares to introduce the Insurance Amendment Bill to Parliament. 
• The proposed amendments include increasing the foreign direct investment (FDI) cap in the insurance sector from 74% to 100%, reducing paid-up capital requirements, introducing a composite licence system, and streamlining regulatory processes.
• The committee’s mandate is strictly limited to reviewing the proposed changes and determining their implementation through regulations and circulars, without suggesting additional amendments.

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Key Facts about Insurance Act, 1938

• It serves as the primary regulatory framework for the country’s insurance industry and led to the establishment of IRDAI. 
• The Act defines the scope of life, general, and health insurance in the country and regulates the role of insurance agents.
• It regulates the relationship between an insurer, its policyholders, shareholders, and the regulator – IRDAI.

Dinesh Khara Committee FAQs

Q1. What is the Insurance Regulatory and Development Authority (IRDAI)?

Ans. IRDAI is an autonomous and statutory body which is responsible for managing and regulating insurance and reinsurance industry in India.

Q2. Which ministry is IRDAI under?

Ans. Ministry of Finance

Q3. Which is the largest insurance company in India?

Ans. The largest insurance company in India is Life Insurance Corporation of India (LIC).

Source: ET