Key Regulatory Changes & Their Impact

1. 100% FDI in Insurance (Increased from 74%)

• What Changed: Foreign investors can now fully own Indian insurance companies
• Benefits:
  • More global capital inflow
  • Improved products & services
  • Enhanced competition

2. Composite Licensing System

• New Rule: Single license for life, health, general & reinsurance
• Advantages:
  • Bundled insurance products
  • Reduced compliance costs
  • Operational flexibility

3. Perpetual Registration for Agents/Brokers

• Earlier: Periodic renewals required
• Now: Lifetime registration (with annual fee compliance)
• Impact: Stability for intermediaries

Policyholder Protection Enhancements

✔ 30-Day Free Look Period (up from 15 days)
✔ Mandatory Nomination in life policies
✔ E-Policy Mandate for digital adoption
✔ Stronger Grievance Redressal systems

Health Insurance Reforms

• No Age Bar for buying health insurance
• Pre-Existing Disease Waiting Period reduced to 3 years (from 4)
• Coverage for Critical Illnesses expanded

Product Innovation

🔹 Index-Linked Insurance Products (market-linked returns)
🔹 Customized Policy Wordings allowed
🔹 Flexible Pricing Models for insurers

Corporate Governance Upgrades

• Stricter Board Composition rules
• Mandatory Risk Management Frameworks
• Enhanced Financial Disclosure requirements

Digital Transformation Push

💻 E-Insurance Policies (paperless)
⚡ Faster Digital Claims processing
🔒 Data Protection Compliance

Conclusion

IRDAI’s 2024 reforms make insurance:
✅ More accessible
✅ More innovative
✅ More policyholder-friendly
✅ More globally competitive

Need Insurance Legal Advice?
B S Makar, Advocate
📞 +91-9878131111 | 🌐 www.makarlaws.com
Specializing in Insurance Law & Regulatory Compliance