insurance

• The Ordinance provides for regulation of Insurance Industry by an autonomous
body
• The insurance business has been bifurcated into two main divisions,

(i) Life Insurance Business
(ii) Non-Life Insurance Business. Each of these two divisions have further been
divided into different classes.
• The minimum solvency margin has not been fixed and is to be prescribed under
the rules from time to time.
• Enforcement of the insurance law has been made more effective by giving to the
Commission powers of investigation and issuance of directives.
• Detailed provisions have been made to prevent insurers from indulging in
practices prejudicial to the interest of policyholders.
• Provision has been made for the institution of an Insurance Ombudsman who
shall have the authority to investigation.
• Provision has been made for the constitution of an Insurance Tribunal, which
shall have, civil as well as criminal jurisdiction.
• Special provisions have been made for the establishment of a Small Disputes
Resolution Committee for speedy settlement of minor claims.
• Penal provisions for contravention of the insurance law have been made stricter.
• Life insurance business companies are required to maintain separate funds for
separate classes of their business.

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