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. 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.
