Licences for new insurance cos. by year end

CALCUTTA, JUNE 17.The Insurance Regulatory and Development Authority (IRDA) is likely to issue licences to new entrants by the year end while providing existing players a 'period of adjustment' to switch over to new the insurance regulations framed by it, a top government official said today.

Mr. P. K. Banerjee, Special Secretary (Insurance), Department of Economic Affairs, Ministry of Finance, said here the IRDA, which is in the process of finalising the regulations, would be receiving applications from prospective applicants by July-August and the issue of licences to new companies can be expected by the year end.

Addressing a seminar on `Insurance - the new horizon' organised by the Bengal Chamber of Commerce and Industry here, Mr. Banerjee said some of the regulations would be finalised at the first meeting of the Insurance Advisory Committee constituted by the IRDA next week, he said. The government intended to make the entry process "transparent and friendly" for both foreign and domestic companies, he said.

On the new regulations, Mr. N. Rangachary, Chairman, IRDA, said the authority intended to adopt some rules in the field of accounting to ensure compliance with international best practices to protect interests of the customers. The existing companies would be granted a 'period of adjustment', which is about a year, to switch over to the new rules, he added.

On the banking sector's participation in insurance, Mr. Biswajit Chowdhury, chairman and managing director of United Bank of India, said the Reserve Bank of India has laid down some criteria for the banks to qualify for entering the new field.

- PTI

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