INSURANCE AND PENSIONS

FICCI has been keenly involved in development of this sector. Before privatization of the sector, FICCI had set up a Multilateral Insurance Working Group (MIWG) which served as a forum to the prospective Insurance Companies, both domestic and overseas to facilitate continuing dialogue between Government, Insurance Regulatory Authority and Public Sector Companies. MIWG also made valuable contribution in formulation of rules and regulations for this sector.

After privatisation….

To move towards a vibrant and strong sector, FICCI constituted a committee on Insurance and Pensions sector which was headed by the Chairman, LIC of India- the largest insurer in India. The aim of the committee was to focus on the following issues:

• To deliberate on the policy issues having a bearing on the performance of the sector and suggest ways and means which help in aiding the industry.
• Develop a better synergistic relationship between government and industry for identifying the major irritants in the performance of the sector and working towards creating an enabling environment for the growth of the sector.
• Constitute task forces to take up some important issues separately.
  

FICCI's Insurance and Pensions committee meets quarterly on various policy issues concerning the industry. Many a times the committee has been the voice and the forum to place the issues in front of the government and the regulator and bring about suitable changes in the economic and regulatory framework.

We have deliberated on various policy issues. In a nut shell:

1. Taxation issues pre and post- budget including Fringe Benefit Tax and EET. Infact FICCI was instrumental in changes that were announced in current years budget related to FBT.
   
2. Capital Issues- Apart from enhancing FDI , we have also been talking about need to relook at current K adequacy and solvency margin.
   
3. Have deliberated in detail on the Consultation paper on "Revision of the Insurance Act, 1938 and the IRDA Act, 1999" in our committee meetings and have submitted the report to the Government.
   
4. Pension Reforms- Starting from the year 2000 when we had contributed to the IRDA report on Pension Reforms in the "Unorganised Sector" which was submitted to the Finance Minister and appeared before the Standing Committee on Finance in the year 2005 till now when we submitted a report to PFRDA post PFRDA Bill.
   
5. Did substantive work on Detariffication and met IRDA which resulted in getting the roadmap from the regulator.
   
6. Prepared a report for examining the practice of special discount as also the remuneration structure of Insurance brokers and Insurance agents in general Insurance business
   
7. Entry strategy for Reinsurance companies                    more...