Dinesh Khara Committee

Source: TOI

Context: The Insurance Regulatory and Development Authority of India (IRDAI) has formed a high-powered committee, led by former SBI chairman Dinesh Khara, to review key provisions of the Insurance Act, 1938.

About Dinesh Khara Committee:

Why Established?

• Review and update the Insurance Act, 1938 to align with modern needs.

• Assess the feasibility of 100% FDI in the insurance sector.

• Facilitate the introduction of composite insurance companies (offering life, non-life, and health insurance under one entity).

• Strengthen policyholder protections and ensure revenue retention within India.

• Propose amendments to be forwarded to the Union Finance Ministry for legislative action.

About Insurance Regulatory and Development Authority of India (IRDAI):

• Established:

• Formed in 1999 under an Act of Parliament. Became fully operational in 2000 when India opened its insurance market to private players.

• Formed in 1999 under an Act of Parliament.

• Became fully operational in 2000 when India opened its insurance market to private players.

• Members:

• 10-member body comprising: 1 Chairman 5 Full-time Members 4 Part-time Members

• 1 Chairman

• 5 Full-time Members

• 4 Part-time Members

• Ministry: Ministry of Finance

• Headquarters: Hyderabad, Telangana

• Functions & Role: Regulates the insurance and reinsurance industry to ensure financial stability. Protects policyholders’ interests by ensuring fair treatment. Monitors insurance providers to prevent market malpractices. Facilitates the growth of the insurance sector while maintaining market discipline. Oversees Foreign Direct Investment (FDI) regulations in insurance companies. Ensures compliance with the Insurance Act, 1938 and other regulations.

• Regulates the insurance and reinsurance industry to ensure financial stability.

• Protects policyholders’ interests by ensuring fair treatment.

• Monitors insurance providers to prevent market malpractices.

• Facilitates the growth of the insurance sector while maintaining market discipline.

• Oversees Foreign Direct Investment (FDI) regulations in insurance companies.

• Ensures compliance with the Insurance Act, 1938 and other regulations.