Economic Order Supply Driven Structure Essay

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economic order supply-driven structure was replaced by the demand-driven market structure through liberalization and entry of private sector players.

3.4.3 INSURANCE REGULATORY ACT (1999)
The Malhotra Committee Report set the tone of change in the Indian insurance sector and deregulation followed subsequently. Indian cabinet approved the Insurance Regulatory Authority (IRA) Bill on 6 March 1999 which was aimed at liberalizing Indian life and general insurance industry. However, due to political instability the bill could not be ratified by the Indian parliament. The bill was subsequently termed as IRDA Act and passed in the Parliament on 7 December 1999. With the passing of the bill the monopoly position of LIC was removed and private companies were allowed to operate in the Indian insurance market. After the IRDA bill was passed in the Parliament, private insurance companies were given licenses to operate in the Indian market. Joint ventures between Indian and foreign companies were allowed but FDI was limited to 26 per cent of Rs 100 crore capitals of life companies and Rs 200 crore for non-life companies. Indian insurance market witnessed a silent revolution with the IRDA in place. IRDA, in the light of with its Mission Statement came out with several guidelines/circulars/orders in the interest of healthy growth of the Indian insurance industry, protection of consumers’ interest and orderly management of insurance companies. Mission Statement of IRDA.

In its Annual
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