Insurance Act - The accelarated passage

It is on the news again. Business Line today reported that the Insurance Laws may be put on fast track (see report). There is also a report on similar lines in The Economic Times of Today

What is in it for us as Insurance People and also as common public.

1. It is estimated that over Rs.10,000 crores would come in as FDI which is great news for the economy. (ET report of today)
2. There is a greater scope of techonology transfer in as much it pertains to insurance with the foreign insurers like Lloyds allowed to set up branches here
3. An insurance company would have the right to rely on the statements in proposal only for the first 5 years. That means after 5 years if there is an incidence of claim, the insurers would have no right of refusal of the claim citing some statement or mis statement in proposal. This is applicable to the Life Insurance companies. This would give us all a sense of security that the contract that we entered into for the sake of our loved ones would be honoured. Pl check out this article of Economic times which throws more light on the subject

For me the third one is the one that makes this amendment most exciting though all of us would enjoy the positive fallouts of the FDI of Rs.10,000 Crores when it happens.