The Union Cabinet today cleared the Insurance Amendment Bill, 2001 for introduction in the ongoing Parliament session. The Bill seeks to permit cooperative societies to enter the underwriting business by setting up a separate society.
The Bill also seeks to permit cooperative societies to enter the distribution business as also recognise brokers as intermediaries in the insurance business and enable them to receive brokerage fee.
At present, cooperative societies can only enter the insurance sector by floating an entity under the Companies Act but once the Bill is cleared by Parliament they can set up an underwriting company under the Cooperatives Act. A set of cooperative societies along with Iffco and Kribhco have set up an insurance company in partnership with Tokio Marine of Japan.
The Insurance Regulatory and Development Authority
