In which year did the committee for reforms in the insurance sector formed under the chairmanship of R.N. Malhotra submitted its report?
Show answer & explanation
Correct answer: C
Explanation
The R.N. Malhotra Committee submitted its report on insurance sector reforms in 1994.
This committee was formed by the Government of India in 1993 under the chairmanship of R.N. Malhotra, former Governor of the Reserve Bank of India. Its primary objective was to review the structure of the insurance sector and suggest reforms.
Key recommendations of the Malhotra Committee:
Private Sector Entry: The committee recommended allowing private sector companies to enter the insurance business.
Foreign Investment: It recommended allowing foreign companies to enter through joint ventures with Indian partners.
Regulatory Body: The establishment of an independent statutory body to monitor and regulate the insurance sector was recommended, resulting in the establishment of the Insurance Regulatory and Development Authority (IRDA).
Competition: Emphasis was placed on eliminating monopolies in the insurance sector and promoting healthy competition.