Q. The opening up of the Indian insurance sector in the late 1990s was primarily based on the recommendations of a key committee.
In this context, consider the following statements:
1.The Malhotra Committee (1993) recommended opening the sector to private participation, including foreign players, while creating a strong, independent regulator.
2.The resultant regulator, the Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body established in 1999 to promote and ensure the orderly growth of the insurance and reinsurance business.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation:
Statement 1: Correct. The Malhotra Committee, headed by R. N. Malhotra, was pivotal in recommending reforms, including the denationalization and opening up of the sector to competition, leading to the establishment of the regulator.
Statement 2: Correct. IRDA (now IRDAI) was set up in 1999 under the IRDA Act, 1999, as the statutory and autonomous regulator for the insurance sector in India.
