1.Dinesh Khara Insurance Review Committee (Insurance Act Review)

What & Where
High-powered Dinesh Khara Committee set up by IRDAI to overhaul Insurance Act, 1938
Reviews 100 % FDI feasibility and composite insurer model across India
IRDAI, insurance regulator headquartered Hyderabad, operates under Ministry of Finance
Quick Facts for MCQs
Legal & Policy
- Review targets outdated provisions; align Act with contemporary insurance products, tech, market practices
- Possible composite companies would require parliamentary amendment to allow life, non-life, health license merger
- Recommendations forwarded to Finance Ministry for legislative route via Insurance Act amendment bill
Institutional Structure
- IRDAI monitors insurers, reinsurers, FDI compliance, market conduct across national jurisdiction
- Ten-member authority ensures regulatory oversight, financial stability, fair treatment of policyholders
- Committee complements existing internal working groups within IRDAI for focused statutory overhaul
Investment & FDI
- Evaluation of raising foreign equity limit from present 74 % to full 100 % ownership
- Aim: attract global capital while mandating adequate Indian retention of premiums and profits
- Previous FDI cap hikes: 26 % (2000), 49 % (2015), 74 % (2021); committee explores next step
Consumer Protection
- Stronger safeguards envisioned: solvency norms, claims settlement timelines, grievance redressal penalties
- Emphasis on domestic retention ensures fund availability for Indian claim liabilities
- Composite insurers may enable single-window policies, reducing consumer fragmentation
Key Data Points
| Feature | Data-Point |
|---|---|
| Parent ministry | Ministry of Finance |
| Regulator name | Insurance Regulatory and Development Authority of India |
| IRDAI Act year | 1999 |
| IRDAI operational since | 2000 |
| IRDAI HQ | Hyderabad, Telangana |
| IRDAI composition | 1 Chairman, 5 Full-time, 4 Part-time Members |
| Law under review | Insurance Act, 1938 |
| Committee chair | Dinesh Khara (ex-SBI chairman) |
| Key mandate | Suggest amendments, assess 100 % FDI, propose composite insurers |
| Amendment recipient | Union Finance Ministry |
| Core consumer goal | Stronger policyholder protection |
| Sectoral aim | Revenue retention within India |
Related UPSC Prelims PYQs
In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?
Match List I with List II and select the correct answer by using the codes given below the lists:












