Insurance Regulatory and Development Authority (IRDAI) is considering the feasibility of issuing a composite business licence for new and existing insurance companies; sources informed CNBC-TV18.
The composite permit will work with open access for guarantors in any line of business. Such backup plans will be permitted to enter any section – life, Health, general, sources said.
The insurance regulator has sought a legal view from a top legal firm on the composite license proposals. This issuance will require an alteration in the Insurance Act and Parliament’s endorsement.
As of now, guarantors need super durable licenses and public and independent health care coverage organizations.
Recently, the insurance regulator proposed a thirty percent cap on management expenses for Indian general insurance firms.