Insurance sector awaiting 'Annaatthe' for IRDAI

Chennai: Is there a need for a Chairman for Insurance Regulatory and Development Authority of India (IRDAI) is the question that has started popping up.

On Wednesday a reporter asked ICICI Lombard General Insurance Company Ltd's officials at a press meet about the need for a Chairman to head IRDAI?

The sectoral regulator has been functioning without a Chairman since May 2021 and it is business as usual at the Hyderabad-headquartered office with the savings of over Rs 4 lakh per month as salary.

A senior industry official preferring anonymity told IANS: "Perhaps the government can give the necessary powers to the IRDAI members and abolish the chairman's post. The other option is to have IRDAI as one more wing of the Reserve Bank of India (RBI)." Continuing further the official added: "The industry is waiting for an 'Annaatthe' or an action oriented Chairman for IRDAI as many things are in a limbo."

"The existing Members are not even responding to the letters/mails sent to them. At least the earlier Chairman used to respond to the letters and would meet the industry officials when a meeting was sought," the official bemoaned.

What the official seems to be true as queries sent to some of the Members by IANS on several aspects were not even acknowledged nor they answer or return the calls. Meanwhile, the government has called for applications for the post of Member (Non-Life) as the incumbent T.L.Alamelu's tenure is ending in May, officials said.

Be that as it may, industry officials had told IANS that the incoming IRDAI Chairman has important tasks like setting the house in order, working towards its core mission of policyholder's interest, speeding up the new company licensing process, avoiding micromanagement and others.

They also said upward revision of motor third party premium, simplification of its regulations, leveling the playing field are some of the other areas, the officials added. Industry officials told IANS that the IRDAI has not licensed any new insurer during the past couple of years. Even the Andhra Pradesh government's initiative to set up a crop insurance company is getting delayed, they said.

"Globally in the insurance sector, many things are changing focused on safeguarding the policyholder's interest, growing the industry and making the players remain solvent," a head of a large non-life insurer had told IANS on the condition of anonymity.