Economics
Context: The Securities Appellate Tribunal (SAT) has upheld the order of insurance regulator IRDAI directing Go Digit General Insurance to discontinue the product “Digit Group Total Protect Policy” as the product falls under the purview of life insurance which could not be offered by a general insurance company.
About Securities Appellate Tribunal:
- SAT is a statutory body established under the provisions of Section 15K of the SEBI Act, 1992.
- The Securities Appellate Tribunal has only one bench which sits at Mumbai.
- It is under the jurisdiction of Ministry of Finance.
- Composition:
- SAT consists of a Presiding Officer and Two other members.
- The Presiding officer of SAT shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
- Powers and Functions:
- It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
- To hear and dispose of appeals against orders passed by the SEBI or by an adjudicating officer under the SEBI Act,1992.
- To hear and dispose of appeals against orders passed by the Pension Fund Regulatory and Development Authority (PFRDA).
- To hear and dispose of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI).
About The Insurance Regulatory and Development Authority of India (IRDAI):
- History: Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry.
- Made an independent statutory body in 2000 that was set up under the IRDA Act,1999.
- It is under the jurisdiction of Ministry of Finance.
- Mandate: It is tasked with regulating and licensing the insurance and re-insurance industries in India.
- Aim: To protect the interests of the insurance policyholders and to develop and regulates the insurance industry. It issues advisories regularly to insurance companies regarding the changes in rules and regulations.
- HQ: The agency’s headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
- Composition: IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.
Main Objectives:
- To ensure fair treatment and protect the interests of the policyholder.
- To regulate the insurance companies and ensuring the industry’s financial soundness.
- To formulate standards and regulations so that there is no ambiguity.
Functions:
- Granting, renewing, cancelling or modifying the registration of insurance companies.
- Levying charges and fees as per the IRDA act.
- Conducting investigation, inspection, audit, etc. of insurance companies and other organizations in the insurance industry.
- Specifying the code of conduct and providing qualifications and training to intermediaries, insurance agents etc.
- Regulating and controlling the insurance premium rates, terms and conditions and other benefits offered by insurers.
- Provides a grievance redressal forum and protecting interests of the policyholder.
Source: Indian Express
