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Comprehensive insurance law needed: Jaitley
New Delhi, Aug 25: Government today favoured a comprehensive insurance law relevant to emerging changes and needs, including an alternate dispute resolution and appellate authority in line with that for securities market (SAT) and telecom sector (TDSAT).
New Delhi, Aug 25: Government today favoured a comprehensive insurance law relevant to emerging changes and needs, including an alternate dispute resolution and appellate authority in line with that for securities market (SAT) and telecom sector (TDSAT).
"Insurance Act of 1938 has phrases and concepts which are
no longer relevant. There is a need to look at insurance laws
comprehensively," Law Minister Arun Jaitley said at a FICCI
seminar on insurance here.
He was referring to the consultation paper drawn up by Law Commission on a comprehensive law by merging Insurance Act of 1938 and IRDA Act of 1999.
The need to bring in a comprehensive law also stems from the fact that there were thousands of litigations in the insurance and banking sectors due to the old provisions.
Referring to health insurance, Jaitley said inadequate laws and lack of good insurance schemes were the reasons for poor development of the sector.
Law Commission chairman Justice M Jagannadha Rao said lot of provisions in the two acts have become redundant and have to be removed. There was a need to have an Insurance Appellate Authority in line with Securities Appellate Tribunal and Telecom Disputes Settlement Appellate Tribunal, he said.
"The main objective is access to justice," Rao said, adding, so far, most of the insurance disputes are referred to consumer forums and there was a need for a regional grievance authority which would be within the reach of common man.
He said the new law should make a mandatory provision for alternate dispute resolution in the form of mediation and conciliation, before the consumer goes to court. Bureau Report
He was referring to the consultation paper drawn up by Law Commission on a comprehensive law by merging Insurance Act of 1938 and IRDA Act of 1999.
The need to bring in a comprehensive law also stems from the fact that there were thousands of litigations in the insurance and banking sectors due to the old provisions.
Referring to health insurance, Jaitley said inadequate laws and lack of good insurance schemes were the reasons for poor development of the sector.
Law Commission chairman Justice M Jagannadha Rao said lot of provisions in the two acts have become redundant and have to be removed. There was a need to have an Insurance Appellate Authority in line with Securities Appellate Tribunal and Telecom Disputes Settlement Appellate Tribunal, he said.
"The main objective is access to justice," Rao said, adding, so far, most of the insurance disputes are referred to consumer forums and there was a need for a regional grievance authority which would be within the reach of common man.
He said the new law should make a mandatory provision for alternate dispute resolution in the form of mediation and conciliation, before the consumer goes to court. Bureau Report