The Insurance Regulatory and Development Authority of India (IRDAI) has taken a proactive step in response to the Digital Personal Data Protection Act, 2023 (DPDP Act, 2023). Issuing an order (Ref. IRDAI/GA&HR/ORD/207/11/2023) on November 24, 2023, IRDAI has established a Task Force to assess the impact of the DPDP Act on the insurance sector.
Detailed Analysis:
1. Background of DPDP Act, 2023: The DPDP Act, 2023, introduced by the Ministry of Law and Justice, focuses on creating a comprehensive framework for the processing of digital personal data. It balances the rights of individuals to protect their personal data with the legitimate need to process such data for lawful purposes.
2. Constitution of the Task Force: IRDAI has assembled a distinguished Task Force with key industry stakeholders. Mr. Randip Singh Jagpal, Executive Director (Non-Life), IRDAI, leads the Task Force as the Chairperson. Other members include representatives from life and general insurance companies, legal experts, and IT professionals.
3. Scope and Objectives: The primary objective of the Task Force is to examine how the DPDP Act, 2023, impacts the insurance sector. It aims to identify potential challenges, ensure compliance, and propose recommendations to align the industry with the new data protection framework.
4. Timeline for Report Submission: The Task Force has a mandate to submit its comprehensive report within one month of the issuance of the order. This highlights the urgency and seriousness with which IRDAI is addressing the implications of the DPDP Act on the insurance landscape.
5. Draft Order Approval: The Draft Order, proposed by the Task Force, is subject to approval. It is an essential step towards implementing any changes or recommendations that arise from the Task Force’s analysis.
Conclusion: In conclusion, IRDAI’s formation of a Task Force signifies a proactive approach to navigate the evolving landscape of data protection laws. The insurance sector’s adaptation to the DPDP Act, 2023, is crucial for maintaining the delicate balance between protecting individual privacy and facilitating lawful data processing. As the Task Force diligently works towards its mandate, stakeholders eagerly await insights and recommendations that will shape the future of data protection in the insurance industry. Stay tuned for updates on this significant development.
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Insurance Regulatory and Development Authority of India
Order Ref. IRDAI/GA&HR/ORD/207 /11/2023 Date: November 24, 2023
Re: Formation of Task Force – Impact of Digital Personal Data Protection Act, 2023 on the Insurance Sector
The Ministry of Law and Justice, Legislative Department vide Gazette Notification No.CG-DL-E-12082023-248045 dated 11.08.2023 notified the Digital Personal Data Protection Act, 2023 (DPDP Act, 2023). The Act aims to provide for setting out a comprehensive framework for the processing of digital personal data in a manner that recognises both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes and for matters connected therewith or incidental thereto.
2. In view of the above, a Task Force consisting of the following members has been constituted to examine the implications of the DPDP Act, 2023 on the insurance sector as a whole:-:-
i) Mr. Randip Singh Jagpal, Executive Director (Non-Life), IRDAI & Member of Stakeholders’ Committee — Chairperson;
ii) Ms. J. Meena Kumari, Executive Director (Life), IRDAI & Member of Operations of Committee of BIMA Sugam — Member,
iii) Chairman, Life Insurance Corporation of India — Member
iv) CEO, HDFC Life Insurance Company Ltd. — Member
v) CMD, General Insurance Corporation of India — Member
vi) CMD, New India Assurance Company Ltd. — Member
vii) CEO, ICICI Lombard General Insurance Company Ltd. — Member
viii) CEO, Aditya Birla Health Insurance Company Ltd. — Member
ix) Mr. L. Viswanathan, Member, Insurance Advisory Committee — Member
x) Mr. Indranath Bishnu, Partner, Cyril Amarchand Mangaldas Advocates & Solicitors — Member
xi) Mr. Deepak Somaithakur, Manager (IT), IRDAI — Member Convenor
3. The Task Force would submit the Report within a period of 1 month of issuance of the Order. The Draft Order proposed to be issued is placed alongside in the file for approval.
4. This has approval of the Competent Authority.
Chief General Manager (GA & HR)
