Financial Services Secretary, Vivek Joshi, met with leaders and CEOs of private sector general insurance companies in a discussion that covered several critical issues affecting the general insurance sector. The meeting, which included representatives from the General Insurance Council, addressed the following key concerns:
- GST Input Tax Credit Violations: The insurance industry is currently facing penalties imposed by tax authorities for Goods and Services Tax (GST) input tax credit violations. The meeting aimed to address these concerns and find potential solutions. Notably, the finance ministry has so far refrained from intervening in this matter.
- Enhancing Public Awareness: The participants discussed initiatives to raise public awareness about insurance through continuous engagement with individual states. This effort is designed to increase insurance penetration and coverage among the public.
- Streamlining Distribution Channels: The need to streamline distribution channels, particularly in expanding the agency channel within the general insurance industry, was a key point of discussion. This expansion aims to further increase insurance penetration.
- Compliance with Motor Vehicles Act: The meeting highlighted the need for a more robust and coordinated approach between states and the Ministry of Road Transport and Highways to ensure compliance with the Motor Vehicles Act. This will involve enhancing collaboration to improve compliance and enforce regulations in the transportation sector.
- Cashless Facilities and Standardized Treatment Costs: Collaborative efforts with the Ministry of Health were discussed to enhance cashless facilities and standardize treatment costs. This move aims to foster growth within the health insurance sector.
- Property/Parametric Covers: Insurance companies were encouraged to promote the adoption of property and parametric covers. These are essential tools to mitigate financial losses caused by natural catastrophes and enhance insurance coverage, especially for the MSME sector.
- Fraud Prevention: Addressing the issue of fraud prevention, participants recognized the necessity of linking insurance frauds to the CIBIL score. This approach enhances security and accountability within the industry.
The meeting concluded with an agreement to hold regular meetings with representatives from both the private and public sectors of the insurance industry. These meetings will provide a platform for continuous collaboration to contribute to the growth and development of the insurance sector.
This proactive engagement with insurance companies and stakeholders demonstrates the government’s commitment to addressing issues and fostering a robust and responsive insurance sector that serves the public’s interests. It also highlights the government’s efforts to support the growth and development of the insurance industry in India.