{"id":40228,"date":"2024-03-24T07:48:46","date_gmt":"2024-03-24T02:18:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=40228"},"modified":"2025-10-13T14:45:30","modified_gmt":"2025-10-13T09:15:30","slug":"irdai-approves-8-principle-based-regulations","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/irdai-approves-8-principle-based-regulations\/","title":{"rendered":"IRDAI approves 8 principle-based regulations"},"content":{"rendered":"<h2>What\u2019s in today\u2019s article?<\/h2>\n<ul>\n<li>Why in news?<\/li>\n<li>What is Insurance Regulatory and Development Authority of India (IRDAI)?<\/li>\n<li>What is Bima Sugam?<\/li>\n<li>Other approvals made by IRDAI<\/li>\n<\/ul>\n<h2>Why in news?<\/h2>\n<p>The Insurance Regulatory and Development Authority of India (IRDAI) has approved eight principle-based regulations including the much-awaited Bima Sugam marketplace.<\/p>\n<h2>Insurance Regulatory and Development Authority of India (IRDAI)<\/h2>\n<ul>\n<li><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/insurance-regulatory-and-development-authority-of-india\/\" target=\"_blank\"><u>IRDAI<\/u><\/a> is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999.<\/li>\n<li>IRDAI&#8217;s duties include:\n<ul>\n<li>Regulating the insurance business<\/li>\n<li>Promoting the orderly growth of the insurance business<\/li>\n<li>Protecting the interests of policyholders<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Bima Sugam<\/h2>\n<ul>\n<li>About\n<ul>\n<li>It is an online platform where customers can choose a suitable scheme from multiple options given by various companies.<\/li>\n<li>All insurance requirements, including those for life, health, and general insurance (including motor and travel) will be met by Bima Sugam.<\/li>\n<li>This platform will help in the settlement of claims, whether it is health coverage or death claims, in a paperless manner on the basis of policy numbers.<\/li>\n<\/ul>\n<\/li>\n<li>Benefits of Bima Sugam\n<ul>\n<li>Single window for the policyholder to manage his\/her insurance coverage.\n<ul>\n<li>It will provide end-to-end solutions for customers\u2019 insurance needs i.e., purchase, service, and settlement in a seamless manner.<\/li>\n<\/ul>\n<\/li>\n<li>Empowerment of consumers\n<ul>\n<li>Currently, there are hundreds of insurance schemes in the life and non-life sectors.<\/li>\n<li>Customers have no idea who is offering the best deal and the pros and cons of different schemes.<\/li>\n<li>Bima Sugam will enable them to identify a suitable scheme for the customers in a single platform.<\/li>\n<\/ul>\n<\/li>\n<li>Benefits for insurance companies and intermediaries\n<ul>\n<li>It will facilitate insurance companies to access the validated and authentic data from various touch points on a real-time basis.<\/li>\n<li>The platform will provide interface for the intermediaries and agents to sell policies and provide services to policyholders, among others, and <u>reduce paperwork<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>Universalise and democratise insurance\n<ul>\n<li>IRDAI says Bima Sugam is an electronic marketplace protocol.<\/li>\n<li>This protocol will be connected with India Stack which is a set of APIs (application programming interface) that allows governments, businesses, startups, etc. to utilise the unique digital infrastructure to enable seamless delivery of services.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Approvals made by IRDAI<\/h2>\n<ul>\n<li>The IRDAI (Bima Sugam \u2013 Insurance Electronic Marketplace) Regulations, 2024\n<ul>\n<li>It aims to establish a digital public infrastructure named Bima Sugam.<\/li>\n<li>It will empower and safeguard policyholders\u2019 interests and achieve the <u>vision of Insurance for all by 2047<\/u>.<\/li>\n<\/ul>\n<\/li>\n<li>The IRDAI (Corporate Governance for Insurers) Regulations, 2024\n<ul>\n<li>It aims to establish a robust governance framework for insurers, defining the roles and responsibilities of the board and management.<\/li>\n<li>This is for the first time that the governance aspects under the existing guidelines are notified in the form of regulations.<\/li>\n<\/ul>\n<\/li>\n<li>IRDAI (Insurance Products) Regulations, 2024\n<ul>\n<li>It merges six regulations into a unified framework.<\/li>\n<li>It is aimed at enabling insurers to swiftly respond to evolving market demands, enhancing the ease of conducting business and boosting insurance penetration.<\/li>\n<\/ul>\n<\/li>\n<li>IRDAI (Registration and Operations of Foreign Reinsurers Branches &amp; Lloyd\u2019s India) Regulations, 2024\n<ul>\n<li>It consolidates two regulations and aims to foster the systematic development of the reinsurance sector in India by promoting orderly growth and harmonizing the existing legal and regulatory framework.<\/li>\n<\/ul>\n<\/li>\n<li>Other decisions\n<ul>\n<li>IRDAI cleared the regulatory changes under rural, social sector and motor Third-Party (TP) motor insurance.<\/li>\n<li>For rural obligations, the unit of measurement will now be the gram panchayat.<\/li>\n<li>The scope of the social sector has been extended to cover cardholders and beneficiaries under various schemes.<\/li>\n<li>Under Motor TP, the unit of measurement will be the renewal of coverage for goods and passenger-carrying vehicles, as well as tractors.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1)\u00a0What is Third-party (TP) motor insurance?<\/h3>\n<p>Third-party (TP) motor insurance, also known as act-only insurance, is a type of liability insurance that protects the owner of a vehicle from claims made by a third party. It&#8217;s a statutory requirement for all vehicle owners under the Motor Vehicle Act.<\/p>\n<h3>Q2)\u00a0What is corporate governance?<\/h3>\n<p>Corporate governance is a set of rules, practices, and processes that direct and control a company. It&#8217;s the framework of policies and guidelines that inform a company&#8217;s conduct, decision-making, and practice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IRDAI was established for overall supervision and development of the Insurance sector.<\/p>\n","protected":false},"author":5,"featured_media":40229,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-40228","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/40228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=40228"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/40228\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/40229"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=40228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=40228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=40228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}