IRDA should focus on Development : Gipsa

With some private insurers being issued licenses and regulatory measures in place, the Insurance Regulatory and Development Authority (IRDA) should now focus on the development of industry as a whole. This is what Mr. K.N Bhandari, (see profile – ) chairman and managing director of the United India Insurance Company and chairman of General Insurers (Public Sector) Association (Gipsa), states.

According to him, the IRDA and the government should now strengthen nationalised insurers in the interest of the national economy.
"If the government wants our continued presence in remote and unviable areas like north eastern regions, then sufficient tax breaks are to be allowed to us," he demands. "In some areas we are operating at a cost of 45 per cent," he adds.

Already four companies have started getting out of social sector insurance schemes like Personal Accident Social Security Scheme (PASS) and Hut insurance. According to industry sources the companies haven't allocated any funds towards these schemes this fiscal.