The Union Cabinet today gave its approval for introduction of the Insurance (Amendment) Bill, 2008 for amendment to Insurance Act, 1938, General Insurance Business (Nationalization) Act, 1972 and Insurance Regulatory and Development Authority Act, 1999 in the Rajya Sabha on the basis of the recommendations made by GoM. The Cabinet also decided to introduce the Life Insurance Corporation (Amendment) Bill, 2008 in the Lok Sabha on the basis of the recommendations made by GoM.

The amendments will remove archaic and redundant provisions in the legislations and incorporation certain provisions to provide IRDA with flexibility to discharge its functions effectively and efficiently.

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SH/RK

Insurance law amendments to modernize statutes and grant regulator greater operational flexibility following government recommendations. The Union Cabinet authorised introduction of amendment bills to the Insurance Act, 1938; the General Insurance Business (Nationalization) Act, 1972; the Insurance Regulatory and Development Authority Act, 1999 and the Life Insurance Corporation Act, 1956 on the basis of Group of Ministers' recommendations. The amendments aim to remove archaic and redundant provisions and to incorporate provisions granting the regulator greater operational flexibility so the Insurance Regulatory and Development Authority can discharge its functions more effectively and efficiently.