IRDA proves that it is a representative of Pvt. Ins. Cos.!

Industry expects Insurance Bill to be
passed soon: IRDA
Category » Business Posted On Friday, July 24, 2009
Agencies
New Delhi July 24:
The insurance industry expects the Insurance Bill, which has already been tabled in the Rajya
Sabha and is currently pending with the Standing Committee on Finance, to be passed soon,
Insurance Regulatory and Development Authority Chairman J Hari Narayan said. ''The
Insurance Bill has been placed in Parliament and it has been referred to the Standing
Committee...we are looking forward that the Bill will be considered by the
Committee...Sooner than later, the Bill will be passed that is what the industry is hoping,'' he
said on the sidelines of 'National Summit on Indian Insurance Induatry, 2009,' organised by
Assocham.
Mr Narayan said, ''the matter is before Parliament which is a supreme body, so I can't
comment on the timeframe''. Talking about the recent capping on overall charges, which the
life insurance firms can levy on customers of their Unit Linked Insurance Policies (ULIPs), he
said the move will enable companies to become more efficient as well as benefit the
customers. ULIPs are the products, which could be invested in equity markets, and
investments in them are subject to market risk.
For insurance contracts, which have a tenor of less than or equal to 10 years duration, the
difference between gross and net yields shall not exceed 300 basis points, of which fund
management charges shall not exceed 150 basis points. For other contracts of above 10-year
period, the difference between gross and net yields shall not exceed 225 basis points, of
which the fund management charges shall not exceed 125 basis points, according to the new
provisions.
--Central Chronicle