Life Insurance Council and General Insurance Council will no longer be monopolistic trade bodies of insurance firms with the enactment of the new Insurance Bill.
With the passage of the Insurance Bill, these councils will be structured on the lines of self-regulatory organisations (SROs). Currently, all insurance firms are members of their respective councils and they use these councils as a platform to take care of their interests without taking on board other stakeholders.
As per the new structure, there will be only four representatives of 24 life insurers in the executive committee of Life Insurance Council.
While one person should be an eminent person not connected with insurance business, nominated by the Insurance Regulatory and Development Authority (Irda), three persons will represent insurance agents, intermediaries and policyholders nominated by the Irda.
There will be one representative each from self-help groups and insurance co-operative societies. In the case of General Insurance Council executive committee, there will be four nominees from 28 general insurers, one non-insurance person and four persons to represent insurance agents, third party administrators, surveyors and loss assessors and policyholders nominated by the Irda.