More transparency ensured through stricter norms

The norms are getting stricter and severe, making the insurance industry more transparent. This becomes evident from the fact that any suspect of money laundering will now have to be reported to the insurance regulator. The insurance companies will now have to give an account of insurance premiums paid by the insured which is beyond a certain limit, to the Insurance Regulatory and Development Authority (IRDA). However no such limit will be applicable for the transaction done through the cheques, credit cards or money transfer. Nevertheless, the insurers are free to decide to send the reports to IRDA for any money-laundering suspect. This is so because the banking system follows a set of anti money laundering norms, which takes care of other cash transactions. However the insurance companies will be provided with a ‘suspicious transactions’, which will be similar to the one agreed by the banking system.