ICFAI organises three-day international conference on insurance law

Hyderabad: Insurance Regulatory Development Authority of India (IRDAI) Chairman Subhash C Khuntia said that insurance penetration in India was about 3.7 per cent of the GDP as against the world average of 6.31 per cent.The ICFAI Law School, Hyderabad organised three-day International Conference on ‘Insurance Law and Regulations: Global Practices at its campus. 

Inaugurating the conference Subhash Khuntia said that the developed countries have average of 10 per cent. Khuntia gave a brief history of insurance and said that the very first legislation with respect to the insurance was Life Insurance Act, 1912 and there were several small insurance companies which later got merged into one insurance company by name Life Insurance Corporation of India in 1956. 

Khuntia also referred to the 1938 Insurance Act, which he said was the mother of Insurance Acts in India and highlighted that prior to 2015 and after 1991 there was 26 per cent FDI in insurance but after the 2015 the percentage rate has been increased to 49 per cent. Vice Chancellor, ICFAI Foundation for Higher Education Prof J Mahender Reddy said that the objective of the conference was to serve as a platform for sharing of ideas and views on the emerging issues in the insurance sector. 

Referring to the 1994 Malhotra Committee, he said that prior to setting up of this committee there was a gap between the settlement of insurance claims and consumer benefits and upon the recommendations of this committee an umbrella authority was created in the name of Insurance Regulatory Development Authority of India (IRDAI) which regulates the insurance business in India.

Prof Mahender Reddy proposed some questions to be brainstormed during the conference like what has been the growth rate of insurance before and after liberalisation policy. How far the efficiency of the LIC has been improved post liberalisation? Will the schemes like Ayushman Bharat be made applicable to the senior citizens? etc. ICFAI Law School director Prof AV Narasimha Rao highlighted that the insurance sector in India in the last two decades since 1999 has changed significantly.

Earlier there was only one insurance sector but now there are over 24 insurance sectors but the question that looms large was how far this sector has penetrated in corporate sector. He said that there was lack of awareness among the Indian citizens with respect to various products that insurance sector provides. Further, he said that though we are ahead of China in the insurance business but still far behind the global standards. He opined that insurance as a subject was offered by very few Universities including ICFAI.

He proposed to the IRDA Chairman to have collaboration with the IRDA for mutual benefit of the students as well for IRDA in legal aspects. New Castle University, Australia Prof Neil Foster, ICFAI Group Advisor Prof Y R Haragopal Reddy, Coordinator for the programme Prof Hemalatha Devi, Co-coordinator for the conference Asst Prof Preeti, students, delegates representing various Universities and Law Colleges from Australia, Nepal and India participated in the event.