The Insurance Law (Amendment) Bill, 2015 has removed archaic and redundant provisions in the legislations and incorporated certain provisions to provide Insurance Regulatory and Development Authority of India (IRDAI) with the flexibility to discharge its functions more effectively and efficiently. Capital Availability : It provides for enhancement of the foreign investment cap in an Indian Insurance Company from 26% to an explicitly composite limit of 49% with the safeguard of Indian ownership and control.The four public sector general Insurance companies, presently required as per the General Insurance Business (Nationalization) Act, 1972 (GIBNA, 1972) to be 100% government owned, are now allowed to raise capital, keeping in view the need for expansion of the business in the rural and social sectors, meeting the solvency margin for this purpose and achieving enhanced competitiveness subject to the Government equity not being less than 51% at any point of time. Consumer Welfare : Introduction of imposing higher penalties ranging Rs. 1 Crore to Rs. 25 Crore on intermediaries/Insurance companies for misconduct and disallowing multilevel marketing of Insurance products in order to curtail the practice of mis-selling.Empowerment of IRDAI : Greater and flexible responsibility is cast upon Insurers for appointing Insurance Agents subject to IRDAI to provides for and regulate their eligibility, qualifications and other aspects. IRDAI is empowered to regulate key aspects of Insurance Company operations in areas like solvency, investments, expenses and commissions and to formulate regulations for payment of commission and control of management expenses.It empowers the Authority to regulate the functions, code of conduct, etc., of surveyors and loss assessors. It also expands the scope of Insurance intermediaries to include Insurance brokers, re- Insurance brokers, Insurance consultants, corporate Agents, third party administrators, surveyors and loss assessors and such other entities, as may be notified by the Authority from time to time. Further, properties in India can now be insured with a foreign Insurer with prior permission of IRDAI; which was earlier to be done with the approval of the Central Government. Health Insurance : The amendment Act defines ‘Health Insurance business’ inclusive of Travel and Personal accident cover and discourages non-serious players by retaining capital requirements for health Insurers at the level of Rs. 100 Crore.Promoting Reinsurance Business in India : The amended law enables foreign Reinsurers to set up branches in India and defines ‘re-Insurance’ to mean “the Insurance of part of one Insurer’s risk by another Insurer who accepts the risk for a mutually acceptable premium”, and thereby excludes the possibility of 100% Ceding of risk to a re-Insurer, which could lead to companies acting as front companies for other Insurers. Further, it enables Lloyds and its members to operate in India through setting up of branches for the purpose of Reinsurance business or as investors in an Indian Insurance Company within the 49% cap.Strengthening of Industry Councils : The Life Insurance Council and General Insurance Council have now been made self-regulating bodies by empowering them to frame bye-laws for elections, meetings and levy and collect fees etc. from its members. Inclusion of representatives of self-help groups and Insurance cooperative societies in Insurance councils has also been enabled to broad base the representation on these Councils.Robust Appellate Process : Appeals against the orders of IRDAI are to be preferred to SAT as the amended Law provides for any Insurer or Insurance intermediary aggrieved by any order made by IRDAI to prefer an appeal to the Securities Appellate Tribunal (SAT).Act: Insurance Regulatory and Development Authority Act, 1999 : The objects are stated in the Act as follows: An Act to provide for the establishment of an authority to protect the interest of the holder of Insurance Policy, to regulate, promote and ensure orderly growth of Insurance industry and for matter connected therewith or incidental thereto and future to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the general Insurance business (Nationalization) act, 1972. The purpose of forming the IRDA (01) To protect the interest of Policyholders and to secure their fair treatment (02) To bring about speedy and orderly growth of the insurance industry including annuity an superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy. (03) To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates. (04) To ensure that insurance customers receive precise, clear and correct information about products and services and to make them aware of their responsibilities and duties in this regard. (05) To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redrssal machinery (06) To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players (07) To take action where such standards are inadequate or ineffectively enforced. (08) To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.

This Act codifies the law relating to Marine Insurance. With a few exceptions this Act closely follows the UK marine Insurance Act, 1906.

The Act also provides protection to ship-owners. For example, the liability of a ship-owner can be limited to certain maximum sums for certain losses, provided the incident giving rise to such claims has arisen without the actual fault or privity of the ship-owner. These claims may relate to loss of life, personal injury, or damage to property on land or water. The Act also confers the obligation on the ship owner to send his ship to sea in a seaworthy and safe condition.

Every State Government and Union Territory has issued its own Act or Guidelines in regard to minimum wages that shall be applicable in that State/UT respect of unskilled, semiskilled and skilled categories in all schedules employments.

The Motor Vehicles(Amendment) Bill 2016, introduced in the Lok Sabha seeks to bring about comprehensive changes in the present Motor Vehicles Act. The salient features of the Bill are as follows:- Limits on insurer’s liability : The proposed amendment seeks to put a cap on the liability to be borne by insurance companies in respect of third party claims to an extent of Rs.10 lakh in respect of death and Rs. 5 lakhs in respect of bodily injury arising out of motor vehicle accident. This means that the liability fixed on the insurer can be even lesser than Rs.10 lakhs and Rs.5 lakhs in case of death or bodily injury, as the case may be. The consequence of this section would be that in compensation claims, the victims will not be able to realize more than Rs.10 lakhs in case of death, and Rs.5 lakhs in case of bodily injury from the insurer under third party claim, and will have to realize the excess amount from the owner or driver.Enabling insurer to seek exoneration from liability for non-receipt of premium : The Bill seeks to make non-receipt of premium one of the specified conditions, which would enable the insurer to seek exoneration from the liability.Hit and Run Scheme : The compensation payable for victims in ‘hit and run’ out of the scheme fund under Section 161 has been enhanced to Rs. 2 lakhs in case of death, and Rs. 50,000/- in case of bodily injury, from Rs. 25,000/- and Rs. 12,500/- respectively.Motor Vehicle Accident Fund : The Bill seeks to introduce a Motor Vehicle Accident Fund under Section 164B, which is to be augmented by a special tax or cess. The Fund is to be utilized for giving immediate relief to victims of motor accidents, and also hit and run cases. The compensation paid out of the fund shall be deductible from the compensation which the victim may get in future from the Tribunal.Stringent Penalties for Road Traffic Violations : The Bill seeks to enhance the penalties for road traffic violations Proposed Amendments in Various Penalties under Motor Vehicle Amendment Bill – 2016. What is noteworthy is the provision for imposition of penalty for unauthorized use of vehicles by juveniles, whereby the guardian and owner is made liable for penal action.Protection of Good Samaritans : The Act defines “Good Samaritan” as a person, who in good faith, voluntarily and without expectation of any reward or compensation renders emergency medical or non-medical care or assistance at the scene of an accident to the victim or transporting such victim to the hospital. The Act makes provision for protection of Good Samaritans from unnecessary trouble or harassment from civil or criminal proceedings. This provision is incorporated following the directions of the Supreme Court in Save Live Foundation vs Union of India AIR 2016 SC 1617.Community Service as Punishment : For causing motor accidents, punishment in the form of ‘Community Service’ can be imposed. The Act defines “Community Service” as unpaid work which a person is required to perform as a punishment for an offence committed under this Act. It seems a cue has been taken from the judgment of the Supreme Court in BMW case (State vs. Sanjeev Nanda (2012) 8 SCC 450), wherein community service of two years was imposed as an alternate punishment.Bill is still pending with Parliament.Act: The Motor Transport Workers Act, 1961: An Act to provide for the welfare of motor transport workers and to regulate the conditions of their work

Chapter VIII provides for compulsory Insurance of motor vehicles. According to the Act, no motor vehicle can be used in a public place unless there is in force, in relation to that vehicle, a Policy of Insurance issued by an authorized Insurer.

The Motor Vehicle Act 1988 replaces the M V Act 1939 and it came into force from 1st July 1989. The Motor Vehicles (Amendment) Act, 1988 has introduced changes which have far-reaching consequences. Chapter (XI) provides for compulsory insurance of motor vehicles. No motor vehicle can be used in a public place unless there is in force in relation to that vehicle a policy of insurance issued by an authorized insurer. The policy is required to cover insured’s liability in respect of death of bodily injury of certain persons (.e.g. third parties, fare-paying passengers, paid drivers, etc) and damage to property of third parties. The limits of liabilities required to be covered are also prescribed in the act. The Act also provides for constitution of Motor Accidents Claims Tribunals by the State Government. The object of this amendment is to ensure speedy settlement of persons involved in Motor Vehicle accidents. The Act mandates payments of compensation to the victims of accidents arising out of the use of a motor vehicle or motor vehicles in public places by the owner or owners as the case may be. The Act provided for compensation of Rs. 50,000 in case of death and of Rs. 25,000 in the case of injury without burden of proof of fault on the part of the vehicle owner. A claimant may seek compensation the basis of the structured formula prescribed in the Act. Besides, a claimant may at his option approach the Tribunal having jurisdiction over the area (i) in which the accident occurred, or (ii) where he resides, or (iii) carries on business or (iv) Where the defendant resides.

Some States/UTs have passed enactment for payment of Bonus specifying the category of employment/minimum and maximum wages to be taken as criteria for eligibility as also % of wages subject to a minimum and maximum to be paid as Bonus to the eligible employees.

Provides for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments. The Payment of Gratuity Act is administered by the Central Government in establishments under its control, establishments having branches in more than one State, major ports, mines, oil fields and the railways and by the State governments and Union Territory administrations in all other cases.

In India some of the States have introduced their respective Professional Service Tax Act whereby providing for levy and collection of a tax on professions, trades, callings and employments for the benefit of the State.