The Insurance Regulatory and Development Authority of India (IRDAI) has revamped the General Insurance Council (GI Council), the official representative body of 29 general insurers, with the addition of five new members but excluded the broking community from the proposed self-regulatory organisation (SRO).
The Insurance (Amendment) 2015 Act provides for restructuring of existing official representatives bodies like GIC and Life Insurance Council to enable them to operate more like an SRO.
However, insurance brokers have protested the move as despite the fact that 20 per cent — around Rs 22,000 crore — of total industry’s premium passes through brokers, none of their representatives have found a place in revamped GI Council.
Sohanlal Kadel, president, Indian Brokers Association of India, has claimed the brokers are real representative of insuring public and has taken up the issue of non-inclusion of brokers. “I have met the chairman of IRDAI on this matter and expressed our displeasure. I have also explained that the brokers are real representative of insuring public. IRDAI chairman explained that the nomination by the IRDAI to the GI Council is as per the Insurance Act (Amendments 2015) and IRDAI has no role in it. However, I have requested him to consider inclusion of IBAI in the General Council. Chairman has promised to look into this matter. We don’t mind knocking at the door of Parliament to see our representative in IBAI,’’ said Kadel.
New members of GI Council are — Girish Rao, representing Third Party Administr-ators, Sanjeeb Choudhury (policy holders), Adil Frenchman (intermediaries), Yogesh Gandhi (Surveyor & Loss Adjuster) and Indu Sawhney (person of eminence but not part of the insurance industry).
The members (Non-life and Life) of IRDAI who were earlier heading respective councils have already quit these bodies since December 2014 and have made way for one of the elected members — CEO of an insurance company — to lead the restructured councils.