Why Irdai’s proposed commission rules could distort insurance market competition

Testing concerns from a competition perspective

Before Irdai finalises the proposals, it can test these concerns from a competition perspective. The Competition Act, 2002 provides a ready mechanism. Under Sections 21 and 21A, a sectoral regulator may seek the opinion of the Competition Commission of India (CCI), and the CCI may in turn seek the regulator’s. The opinion must be given within 60 days. It is not binding, but the authority receiving it must consider it and record reasons for its findings. Irdai can use it, even suo motu, before notifying the final regulations.