Parliamentary panel tells IRDAI to fast-track risk-based capital

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A parliamentary committee has recommended that IRDAI fast-track the risk-based capital framework, according to The Hindu Business Line. The Committee on Public Undertakings, in a report tabled on August 6, also urged the government to examine rationalising the 18% GST on health, term life, agricultural insurance and reinsurance products. It noted that the high GST has hurt affordability and insurance penetration.

The panel expressed concern over the falling market share of public sector insurers and the weak financial health of three general insurers. It recommended board-approved solvency restoration plans with quarterly milestones and said government capital infusion should be a last resort after internal reforms. The committee also called for measurable digital transformation benchmarks across state-run insurers.