Irdai Forms Task Force To Assess Data Protection Act's Impact On Insurance

The Insurance Regulatory Authority of India (Irdai) has formed a task force to assess how the Digital Personal Data Protection Act, 2023, will impact the insurance industry, according to a circular issued by Irdai on November 24. In a communication regarding the establishment of the task force, the regulator mentioned that the Act's provisions would also affect the insurance sector overall. The task force will include leaders from prominent life and general insurance companies, such as the chairman of LIC, the CEO of HDFC Life, the CEO of ICICI Lombard General Insurance, and the CMD of General Insurance Corporation. Officials from the Irdai and a legal expert from a leading law firm will also be members. 

The regulator has given the task force a one-month timeframe to present its report. This decision to analyze the ramifications aligns with the Union Ministry of Law and Justice's notification of the DPDP Act, 2023. In the directive forming the task force, Irdai stated that the act seeks to establish a comprehensive framework for the processing of digital personal data, acknowledging individuals' right to safeguard their data and the necessity of processing such data for lawful purposes.

Irdai said that the act encompasses a range of elements, including its applicability, reasons for processing personal data, consent structure, overall responsibilities of data fiduciaries, the right to access information regarding personal data, and penalties for non-compliance.

Digital Personal Data Protection Act, 2023: 

The Digital Personal Data Protection Act, 2023, also referred to as DPDP Act or DPDPA-2023 is a legislation enacted by the Parliament of India. It aims to regulate the processing of digital personal data, acknowledging the right of individuals to safeguard their personal information and the necessity of processing such data for lawful purposes, along with related matters. Notably, this marks the first instance in the Parliament of India where "she/her" pronouns were employed, diverging from the conventional use of "he/him" pronouns.

Anand Kumar Bajaj, founder, MD and CEO, of PayNearby said, “The Draft Personal Data Protection Bill 2023 marks a pivotal era, empowering consumers and nurturing trust within the digital economy. As data's role in fostering an inclusive fintech landscape gains prominence, the bill's lucid outline of rights and responsibilities is commendable. It champions data protection, underscores lawful processing, and shapes a resilient, customer-centric ecosystem. For businesses, it harmonizes innovation with user rights, propelling accountability and opportunity in the digital age. Especially in light of our rural-focused business model, it reaffirms our dedication to banking services while upholding privacy and empowerment. The DPDP Bill strikes a vital balance, safeguarding user rights and fueling digital innovation. This legislative stride bolsters our mission, empowering rural communities through accessible financial services.”