Page 106 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 6: The Insurance Act, 1938

Notes
However, the standing committee on finance headed by senior BJP leader Yashwant Sinha
is not in favour of the hike in FDI ceiling, indicating wide opposition to the proposal.
Seelam also said the government in association with the industry can make India an
investor friendly country.
“We can in association with industry make India investor friendly. The products (financial)
ought to be safe, transparent and it should be attractive... and to have a competent
infrastructure. We are trying to improve the availability of finances,” he said.
He also said that savings rate in India is ‘pretty good’ and it should be used for circulation
as it triggers growth.

“I think investment base needs to be increased by special design and instruments and then
by specific products. Savings should be used for circulation because it triggers growth. We
must have a proper regulatory and redressal mechanism so that people will find a worthy
credit system.”

Referring to the economic situation, the Minister said the economy is now looking up due
to strong fundamentals and that the current account deficit (CAD) would be within the
prescribed limit.

“CAD will be definitely within the expected $60 billion which is easily funded. Fiscal
deficit would also be well below the red line drawn by the Finance Minister,” Seelam
added.
However, he said inflation needs to be moderated and supply side bottlenecks cleared.
“Inflation of course, we need to moderate that. Thanks to the good monsoon, the food
inflation should be contained after improving the supply chain because consumables like
milk, eggs, vegetables and fruits are still showing up high inflation rate,” he added.

Retail or consumer price index (CPI) based inflation rose to 10.09 per cent in October due
to costlier vegetables such as onion and tomatoes and fruit prices as compared to 9.52 per
cent in September.

Question
Discuss the inclusions in Insurance Laws (Amendment) Bill.

Source: http://articles.economictimes.indiatimes.com/2013-12-06/news/44864212_1_winter-session-
insurance-laws-current-account-deficit

6.7 Summary

“Authority” means the Insurance Regulatory and Development Authority established
under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority
Act, 1999;

“Policy-holder” includes a person to whom the whole of the interest of the policy-holder
in the policy is assigned once and for all, but does not include an assignee thereof whose
interest in the policy is infeasible or is for the time being subject to any condition;
“Auditor” means a person qualified under the Chartered Accountants Act, 1949 (38 of
1949), to act as an auditor of companies;

“General insurance business” means fire, marine or miscellaneous insurance business,
whether carried on singly or in combination with one or more of them;

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