Report No. 190

1.7. Limiting the scope of the reference

1.7.1 In the exercise of holding discussions with specific interest groups in relation to the proposals suggested in its Consultation Paper, the Commission became aware that some of the issues that had been taken up for consideration in the Consultation Paper entailed policy decision-making at the level of the Government and that it would be premature to make suggestions to amend the law even before such policy decision was taken. Accordingly, at the stage of preparation of the final Report by the Commission, it was decided that the Report should focus only on certain "legal issues" about which there was not too much of a controversy.

1.7.2 Accordingly, the present Report deals with only the following issues from amongst those mentioned in the Consultation Paper:

i. Changes in definitions including replacement of references in the Insurance Act, 1938 to older enactments by corresponding new legislations and reclassification of insurance businesses including changed definitions of the terms 'insurance' and 'insurer'; (see Chapter II, infra)

ii. Deletion of provisions of the Insurance Act, 1938 that are redundant and deletion of transitional provisions of the Act; (see Chapter II, infra)

iii. Merger of relevant provisions of IRDA Act with the Insurance Act, 1938; (see Chapter III, infra)

iv. Setting up of an independent grievance redressal mechanism with an appeal to an Insurance Appellate Tribunal and further appeal to the Supreme Court of India; (see Chapter IV, infra)

v. Repudiation of policies by insurers on account of misstatement of facts or failure to make disclosure of the material information would render the contract void or voidable; (see Chapter V, infra)

vi. Assignment and transfer and nomination of beneficiaries under insurance policies; (see Chapters VI and VII, infra) and

vii. Provisions relating to penalties and other changes (see Chapter VIII, infra).

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