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The (Amendment) Bill, 2015 is regarded as a controversial bill as it passed on the Lok Sabha easily but it was difficult to pass through Rajya Sabha because of the members present and voting so to solve this, the government held a joint sitting session of both the houses. Government calls the joint sitting of both the houses only when one of the houses gives the approval to pass and the other house rejects it.
It is also named the Insurance Laws as it stated changes to be made in the laws of Insurance. Lok Sabha had a short debate on a proposal of increasing the foreign investment capacity to 49% which was earlier 26%. After having a short debate, the proposal was given approval by the Lok Sabha and this proposal comes under the Insurance Laws or the (Amendment) Bill 2015.
FEATURES OF THE AMENDMENT ACT 2015
Some of the features of the (Amendment) Bill, 2015 are as follows:
Properties that belong to India or are registered in India should not be insured by the party lying outside India
No person has been permitted to renew or start his insurance policy in a company that is registered outside India and if a person ignores this and breaks the law then he becomes liable to pay 5 crore rupees.
Health Insurance [ sec2(6c)]
This defined Health Insurance as the insurance against health-related problems which will also include accidents while traveling and personal accidents. They keep the capital requirement of 100 crores for the health insurers which in turn helps them in the promotion.
Payment of annual fee by the insurer
An insurer who gets his insurance has to pay an annual fee which is his premium to the authority or the company in which he has taken his insurance. If he fails to give the premium or the annual fees, the registration certificate which he gets at the time of commencement should be canceled.
Prohibition of investment of funds outside India
The insurer who gets the funds from the insured should not invest the money outside India and should invest only in the companies based in India.
Restrictions on the opening of the new place of business
Under the (Amendment) Bill, 2015 no insurer after the beginning of the insurance policy can change his place of business, he cannot open or close any business outside India or in India, cannot change his business as these all are mentioned in the regulations.
Sec 39
The insurer after the completion of the insurance policy or there has been a claim of insurance, then after making payment to the nominee or the insurance holder the Insurer becomes free from all the liabilities and is no longer liable to the insurance holder.
Sec 2(1A)
Authority may have dined as the authority relating to development and insurance regulations in India which are built under the insurance regulatory and development authority act which was passed in 1999.
Power to restrict payment of excessive remuneration
The insurer is not liable to pay any amount of remuneration or cash to any person in respect to the business of insurance. He should not pay to any person as a form of commission or any form that is prescribed under the regulations.
CONCLUSION
The (Amendment) Bill, 2015 is regarded as the biggest reform in terms of insurance law contract in more than a century and it makes a negative impact on the insurance industry’s players i.e. insurers, the holders of the policy, and brokers. Insurers and brokers should be very careful while going through the policy, the wordings of the contract that has been made, and should practice well so that they can adjust to the new regime that has been passed. The new regime has brought trends in insurance in India.
