RDAI to tweak capital norms for insurance firms
14 Dec 2018
“In India the capital requirement at present is Rs 100 crore, which is quite high as compared to advanced nations”, Nilesh Sathe, Member (Life), Insurance Regulatory Development Authority of India (IRDAI) said. By 2021 or 2022, this amount would be changed so that many aspirants could join the insurance sector, he told reporters on the sidelines of MCCI seminar here on Thursday. These firms also did not need to offer a plethora of products but could stick to select ones, he viewed.
Sathe also said he was in line with the banking sector requirements to bring down promoters’ capital leading to listing of the insurance firms. According to him, term policies in India were driven by the private sector unlike the LIC, adding India still provided big scope for insurance penetration and increase in density of insured persons.
(Disclaimer: These are the author’s views. Readers are advised to consult their financial advisor before buying any plan)