What are the key benefits of SBI Credit Cards?

SBI Credit Cards offer a wide range of benefits, including rewards, cashback, lounge access, discounts, and insurance coverage.

How can I apply for an SBI Credit Card?

You can apply for an SBI Credit Card online through the Paisabazaar platform, where you can compare card options and check for pre-approved offers.

What factors should I consider when choosing an SBI Credit Card?

Consider your spending habits, lifestyle, and financial goals to select a card that best suits your needs, such as travel, shopping, or rewards.

How can I manage my SBI Credit Card efficiently?

SBI Card offers a user-friendly mobile app and online banking services to help you manage your card, check statements, make payments, and access additional features.

What precautions should I take to avoid accumulating credit card debt?

Responsible credit card usage includes paying bills on time, managing credit limits wisely, and avoiding unnecessary spending to prevent debt accumulation.

Major Highlights of the Insurance Laws (Amendment) Bill, 2015 Passed by Parliament

The Insurance Laws (Amendment) Bill, 2015, was a significant legislative measure passed by the Lok Sabha on 4th March 2015 and subsequently by the Rajya Sabha on 12th March 2015. This bill brought about critical reforms in the insurance sector, amending the Insurance Act of 1938, the General Insurance Business (Nationalization) Act of 1972, and the Insurance Regulatory and Development Authority (IRDA) Act of 1999. The passage of this bill replaced the Insurance Laws (Amendment) Ordinance, 2014, which had been in effect since 26th December 2014. The amendments introduced by this act aimed to modernize the insurance sector, removing outdated provisions and enhancing the operational flexibility of the Insurance Regulatory and Development Authority of India (IRDAI). One of the landmark changes was increasing the foreign investment cap in Indian insurance companies from 26% to an explicitly composite limit of 49%, while ensuring Indian ownership and control.

Key Highlights of the Amendment Act

1. Capital Availability

The amended law not only raises the foreign equity cap but also facilitates capital raising through innovative instruments under IRDAI's regulatory oversight. This enhanced capital availability is expected to improve the distribution reach to under-served areas, foster innovative product formulations, and enhance service delivery standards. The rules operationalizing these new provisions were notified on 19th February 2015. Additionally, the four public sector general insurance companies, which were mandated to be 100% government-owned, can now raise capital while ensuring the government retains at least a 51% stake. This move aims to support business expansion in rural and social sectors and enhance competitiveness.

2. Consumer Welfare

The amendments are designed to better serve consumer interests. Provisions have been introduced to impose penalties on intermediaries and insurance companies for misconduct and to curtail mis-selling through multilevel marketing. Penalties for violations, including misrepresentation by agents and companies, can now range from Rs. 1 crore to Rs. 25 crores. Furthermore, policies can now only be contested on any ground, including mis-statement of facts, for up to three years from commencement. This ensures that policyholders are better protected and reduces prolonged disputes. The amendment also mandates insurers to underwrite third-party motor vehicle insurance as per IRDAI regulations, retaining obligations for rural and social sector coverage.

3. Empowerment of IRDAI

The act empowers IRDAI to regulate key aspects of insurance operations, including solvency, investments, expenses, and commissions. It allows IRDAI to regulate insurance agents' eligibility, qualifications, and other relevant aspects, ensuring they work across various business categories without conflict of interest. The authority can now also regulate the conduct of surveyors and loss assessors, and the scope of insurance intermediaries has been expanded to include brokers, consultants, third-party administrators, and more. Moreover, properties in India can now be insured with foreign insurers with IRDAI's prior permission, a process previously requiring Central Government approval.

4. Health Insurance

The amendment defines 'health insurance business' to include travel and personal accident cover, discouraging non-serious players by retaining a minimum capital requirement of Rs. 100 crores for health insurers. This move promotes health insurance as a distinct sector, encouraging serious investment and innovation.

5. Promoting Reinsurance Business

The law now permits foreign reinsurers to set up branches in India, defining reinsurance as the insurance of part of one insurer’s risk by another insurer for a mutually acceptable premium. This definition prevents the possibility of 100% risk ceding, ensuring that companies do not act as front companies for other insurers. Lloyds and its members can now operate in India through branches or as investors within the 49% foreign equity cap, promoting a robust reinsurance market in the country.

6. Strengthening of Industry Councils

The Life Insurance Council and General Insurance Council have been empowered to become self-regulating bodies. They can now frame bye-laws for elections, meetings, and fee collections. The councils now also include representatives from self-help groups and insurance cooperative societies, broadening their representation.

7. Robust Appellate Process

The amendment act allows any insurer or insurance intermediary aggrieved by an IRDAI order to appeal to the Securities Appellate Tribunal (SAT). This provision ensures a fair and efficient appellate process, strengthening the regulatory framework.

Conclusion

The Insurance Laws (Amendment) Act, 2015, brings about significant enhancements in the regulatory framework governing the insurance sector in India. By allowing greater foreign investment, enhancing IRDAI's regulatory powers, and introducing consumer-friendly measures, the amendments aim to foster a more competitive, transparent, and robust insurance market. These changes are expected to drive the sector towards achieving its full growth potential, contributing to the overall economic growth and job creation in the country. The amendments ensure that the insurance industry remains aligned with global regulatory practices, meeting the evolving needs of citizens in a more efficient and subscriber-friendly manner.

The Insurance Laws (Amendment) Bill, 2015, was a significant legislative measure passed by the Lok Sabha on 4th March 2015 and subsequently by the Rajya Sabha on 12th March 2015. This bill brought about critical reforms in the insurance sector, amending the Insurance Act of 1938, the General Insurance Business (Nationalization) Act of 1972, and the Insurance Regulatory and Development Authority (IRDA) Act of 1999. The passage of this bill replaced the Insurance Laws (Amendment) Ordinance, 2014, which had been in effect since 26th December 2014. The amendments introduced by this act aimed to modernize the insurance sector, removing outdated provisions and enhancing the operational flexibility of the Insurance Regulatory and Development Authority of India (IRDAI). One of the landmark changes was increasing the foreign investment cap in Indian insurance companies from 26% to an explicitly composite limit of 49%, while ensuring Indian ownership and control.

Key Highlights of the Amendment Act

1. Capital Availability

The amended law not only raises the foreign equity cap but also facilitates capital raising through innovative instruments under IRDAI's regulatory oversight. This enhanced capital availability is expected to improve the distribution reach to under-served areas, foster innovative product formulations, and enhance service delivery standards. The rules operationalizing these new provisions were notified on 19th February 2015. Additionally, the four public sector general insurance companies, which were mandated to be 100% government-owned, can now raise capital while ensuring the government retains at least a 51% stake. This move aims to support business expansion in rural and social sectors and enhance competitiveness.

2. Consumer Welfare

The amendments are designed to better serve consumer interests. Provisions have been introduced to impose penalties on intermediaries and insurance companies for misconduct and to curtail mis-selling through multilevel marketing. Penalties for violations, including misrepresentation by agents and companies, can now range from Rs. 1 crore to Rs. 25 crores. Furthermore, policies can now only be contested on any ground, including mis-statement of facts, for up to three years from commencement. This ensures that policyholders are better protected and reduces prolonged disputes. The amendment also mandates insurers to underwrite third-party motor vehicle insurance as per IRDAI regulations, retaining obligations for rural and social sector coverage.

3. Empowerment of IRDAI

The act empowers IRDAI to regulate key aspects of insurance operations, including solvency, investments, expenses, and commissions. It allows IRDAI to regulate insurance agents' eligibility, qualifications, and other relevant aspects, ensuring they work across various business categories without conflict of interest. The authority can now also regulate the conduct of surveyors and loss assessors, and the scope of insurance intermediaries has been expanded to include brokers, consultants, third-party administrators, and more. Moreover, properties in India can now be insured with foreign insurers with IRDAI's prior permission, a process previously requiring Central Government approval.

4. Health Insurance

The amendment defines 'health insurance business' to include travel and personal accident cover, discouraging non-serious players by retaining a minimum capital requirement of Rs. 100 crores for health insurers. This move promotes health insurance as a distinct sector, encouraging serious investment and innovation.

5. Promoting Reinsurance Business

The law now permits foreign reinsurers to set up branches in India, defining reinsurance as the insurance of part of one insurer’s risk by another insurer for a mutually acceptable premium. This definition prevents the possibility of 100% risk ceding, ensuring that companies do not act as front companies for other insurers. Lloyds and its members can now operate in India through branches or as investors within the 49% foreign equity cap, promoting a robust reinsurance market in the country.

6. Strengthening of Industry Councils

The Life Insurance Council and General Insurance Council have been empowered to become self-regulating bodies. They can now frame bye-laws for elections, meetings, and fee collections. The councils now also include representatives from self-help groups and insurance cooperative societies, broadening their representation.

7. Robust Appellate Process

The amendment act allows any insurer or insurance intermediary aggrieved by an IRDAI order to appeal to the Securities Appellate Tribunal (SAT). This provision ensures a fair and efficient appellate process, strengthening the regulatory framework.

Conclusion

The Insurance Laws (Amendment) Act, 2015, brings about significant enhancements in the regulatory framework governing the insurance sector in India. By allowing greater foreign investment, enhancing IRDAI's regulatory powers, and introducing consumer-friendly measures, the amendments aim to foster a more competitive, transparent, and robust insurance market. These changes are expected to drive the sector towards achieving its full growth potential, contributing to the overall economic growth and job creation in the country. The amendments ensure that the insurance industry remains aligned with global regulatory practices, meeting the evolving needs of citizens in a more efficient and subscriber-friendly manner.

Want to Achieve any of the below Goals upto 80% faster?

Want to Achieve any of the below Goals upto 80% faster?

Want to Achieve any of the below Goals upto 80% faster?

Want to Achieve any of the below Goals upto 80% faster?

Want to Achieve any of the below Goals upto 80% faster?

Want to Achieve any of the below Goals upto 80% faster?

Major Highlights of the Insurance Laws (Amendment) Bill, 2015 Passed by Parliament

Major Highlights of the Insurance Laws (Amendment) Bill, 2015 Passed by Parliament

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Want to Achieve any of the below
Goals upto 80% faster?

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Goals upto 80% faster?