According to a circular sent by the Insurance Regulatory Authority of India (Irdai) on November 24, a task group has been established to evaluate the potential effects of the Digital Personal Data Protection Act, 2023, on the insurance sector. The regulator stated that the provisions of the Act will also have an impact on the insurance industry as a whole in a correspondence on the task force's formation. Leaders from well-known life and general insurance businesses, including the CMD of General Insurance Corporation, the CEO of HDFC Life, the chairman of LIC, and the CEO of ICICI Lombard General Insurance, will be on the task force. Members will also include representatives from the Irdai and a legal specialist from a reputable law company.
The task team has been given a month by the regulator to submit its report. The Union Ministry of Law and Justice's announcement of the DPDP Act, 2023 is in line with this determination to consider the implications. Irdai said in the order that formed the task force that the act aims to create a thorough framework for the processing of digital personal data, recognising people's right to protect their data and the need to use it for legitimate purposes.
The act, according to Irdai, covers a wide variety of topics, such as its applicability, justifications for processing personal data, consent framework, general duties of data fiduciaries, right to obtain information about personal data, and sanctions for noncompliance.