‘Relations with govt very cordial’

Does the regulator need more teeth, especially in terms of punitive powers?
The regulator seemingly has adequate powers under the Insurance Act, 1938, and the IRDA Act, 1999. However, due to the patchwork of legislation done in 1999 only with the objective of establishing a regulator, certain points of the Insurance Act had been left untouched. While the new legislation is mostly silent on the enforcement machinery and powers of the regulator, the old provisions speak of piffling amounts of penalty. Second, certain portions of LIC Act, 1956 need to be looked into on an urgent basis to enforce a level playing field.

Is it a conscious decision to be rather soft on the private sector and somewhat harsher on the state-owned players in order to avoid charges of favoritism, coming as you do from the bureaucracy?
That is the most incorrect allegation to be ever levelled against the Authority. I’ve often heard the charge, but when pressed to give instances or reasons, nobody has offered any.

There have been differences with the North Block over the custody of funds collected by IRDA. Why do you insist on financial independence from the Centre?
There is no difference with the North Block over the custody of funds collected by IRDA. The Insurance Act clearly specifies the powers of the Authority to levy, collect and retain one’s charges from the insurers, insurance intermediaries etc. The IRDA Act, 1999, provides for constitution of the ‘IRDA Fund’ and the fund has been created.

What’s your comment on the relations between the regulator and the government?
Relations between the government and the regulator have been very cordial.