The Life Insurance Council and its Functions

The life insurance industry in India has seen significant growth over the years. Hundreds of new insurance companies have been set up since independence and thousands of people are purchasing new insurance policies every day. With the life insurance market seeing such a high inflow of investments, the need for a government organization that regulates all the transactions and monitors the life insurance policies of various companies was paramount.

Therefore the life insurance council was formed. It is the organization that maintains the smooth and efficient functioning of the insurance industry. Let’s now learn about the life insurance council in a little brief.

What is the Life Insurance Council?

The life insurance council is a regulatory body that governs all the transactions made regarding insurance policies. It monitors every new and old life insurance policy available in the market. It also safeguards the interests of the policyholders and protects them from any kind of exploitation. The council was formed under Section 64 of the Insurance Act 1938. All the life insurance companies in India function under the guidance of the life insurance council. There are a total of 24 Life insurance companies that work closely with the council to offer a variety of life insurance policies to the customers.

Missions of the life insurance council

• To maintain high standards of service in the insurance industry.
• To interact with the government and other financial bodies on policy matters.
• To actively participate in spreading awareness in the masses about life insurance.
• To further develop education and research in the insurance sector.
• To implement global insurance practices into the Indian insurance industry for the betterment of the consumers.

Functions of the Life Insurance Council

• The life insurance council is a platform that brings together many stakeholders in the insurance sector. It’s a place that addresses and resolves all concerns regarding life insurance policies.
•  It initiates and regulates all the talks between the Government of India, regulatory boards, and the consumers regarding new insurance policies.
•  It advises all insurance companies for maintaining and offering high standards of service to the customers.
•  The life insurance council regularly hosts conferences that bring together the brightest minds in the insurance industry.
•  It conducts multimedia campaigns that spread awareness and curbs misconceptions around insurance policies. These campaigns make the masses understand life insurance policies in a better way and also help them in better financial planning.
•  The life insurance council takes active measures against any frauds or other faulty practices that might be detected in the market. It has imposed strict penalties for fraudsters and also spreads awareness regarding fraud on various social media platforms.
•  It works towards increasing foreign Investments in the Indian insurance industry. The council also acts as a mediator for all the information which is to be exchanged with foreign insurance companies.

The life insurance council is counted amongst the most important financial institutions in the country. It ensures the proper functioning of the life insurance industry and also works to protect the interests of the policyholders. It overlooks the operations of insurance companies and ensures that they provide life insurance policies that meet global standards