Now that the
life insurance industry's self regulatory body,
the Life Insurance Council of India, has started functioning
with a bang (See: ), the process is on to activate
a similar general insurance council within six months.
to industry sources, a group representing the general insurers has started
the process of head hunting for the position of secretary general. The council
would act through an executive committee. It is reliably learnt, another
group is framing the rules and consultative committees are being formed.
The council's headquarters will be in Mumbai.
Insurance Act 1938 provides for the formation of life
and general insurance councils to deal with issues like
standards of conduct and practice, customer service,
controlling management expenses and bring to the regulator's
notice about errant insurers.
IRDA had set up two councils life and general couple of years ago.
The life insurance council is chaired by T K Banerjee, member (life) IRDA
and the general is by Mathew Verghese, member (non-life) IRDA. According
to sources the council meets once in three months.
the issues faced by general insurers are crucial for
their profitability and survival like detariffing. In
addition, the sector has to deal with several agencies
like surveyors, third party claims administrators
apart from individual agents. It may be noted complaints
were made about the insurers and the intermediaries
operating in this sector.
also see : Starting
with a bang