ANNUAL REPORT 2007-08
vi) Insurance Associations and Insurance Councils Life Insurance Council
Life Insurance Council (Council) is a body set up under section 64 C of the Insurance Act 1938. All registered life insurers are members and are represented by CEOs. There are two nominees from the IRDA, one of whom is the Chairman of the Council. The Secretary General functions as the chief executive of the Council. Sri S.B.Mathur has taken over as Secretary General after Sri S.V.Mony demitted office in May 2008. During the Financial Year 2007-08, the Council met 4 times. The Council has set up several standing sub-committees and also ‘working groups’ to discuss emerging issues from time to time. The committee-based approach ensures wider participation in providing valuable contribution.
Brief outline of work in 2007-08
A working group was formed under the aegis of the Council to design the Indian embedded value principles. This group document on Indian embedded value principles had received recognition from European CFO Forum.
The Sub-committee of CFOs, met five times during the year and deliberated including on various issues taxation in general, Service Tax and proposed accounting standards AS 30 /AS 31. This forum had interacted with actuaries and other experts on various issues.
Sub-Committee on Intermediary Education met once to review the after effects of reduction in training hours in mandatory agency training, from 100 hrs. to 50 hrs.
Sub-committee on Creating Life Insurance Awareness appointed a PR agency to ensure increased activities of awareness related programmes. With the help of the PR agency, sub-committee planned and helped the Council to hold First CEO’s Round Table Conference with Media in Sep 2007. This proved to be a successful event in creating awareness among masses.
The Council’s website covered business statistics, latest insurance news and other information and has been upgraded in design and linked with the websites of IRDA and life insurers. Afeedback/query/grievance forwarding mechanism was modified.
Declined Lives Database maintained by TAC has been modified and made operational with the approval of IRDA.
A working group was formed last year to set up Mortality and Morbidity Investigation Centre in association with the Institute of Actuaries of India (IAOI). This group formally met four times and the MOU was signed between the Life Insurance Council and IAOI on November 22, 2007. The Institute is being set up at Hyderabad.
Considering the probability of misuse in selling policies under employer employee category, the Council issued fresh guidelines restricting sale of such policies under certain conditions.
Council has been actively involved in meetings with and conferences organised by CII, FICCI, Bombay Chambers, IMC, NIA etc.
General Insurance Council
The Executive Committee of the Council comprises, apart from the nominees of IRDA [viz. Member (Non-Life) as Chairman and Executive Director (Non-Life) and the Secretary General of the Council, the Chief Executive Officers of all the Non-life insurance companies licensed by IRDA. The Executive Committee of the Council held 12 meetings during 2007-08. In addition, the Council had organized meetings of Chief Underwriters, Heads of Health Insurance Departments, CFOs, etc. from time to time.
The Council took several initiatives in pursuing its mission of expanding and deepening non-life insurance penetration in India and continued its endeavour to promote a responsible, responsive and disciplined pro-consumer service regime imbibing best global practices through a self-regulatory mechanism. The Council focused on issues relating to
promoting non-life insurance market
promote consumer education and awareness of non-
life insurance products development of intermediaries i.e. Agents and Brokers