Appellate Tribunal fails to gain favour

The insurance regulator, Insurance Regulatory and Development Authority (IRDA) has not shown much interest to set up an Insurance Appellate Tribunals, which would have taken care of the all the disputes and penalties arising from the breach of contract by the insurers. The Law Commission had recommended setting up of an Appellate Tribunal. IRDA is also not very keen in transferring the Tariff Advisory Committee (TAC) to the General Insurance Council as suggested by the KP Narasimhan (KPN) Committee. Even if IRDA favours setting up of Appellate Tribunals, it would mean to have one in each state and district headquarters. The entire task would then become exhaustive. Instead the insurance regulator may consider KPN Committee’s recommendation of keeping the present redressal system, Insurance Ombudsman and Consumer Courts untouched. However, IRDA is working on the recommendations made by the Law Commission and KPN Committee and will soon submit its reports to the government.