Question: Health insurance has become widely prevalent in India. However, there have been complaints about claims not being settled expeditiously. Is the government monitoring the situation?

ANSWER: The Insurance Regulatory & Development Authority of India (IRDAI) has urged insurers to focus on transparency and fairness in handling claims and to ensure prompt settlement of the same. There have been some delays partly on account of healthcare providers not adhering to their commitment to charge rates which were agreed with the insurance companies. On the other hand, hospitals have taken the view that insurance companies are questioning medical processes which is resulting in delays in settlement.

During the financial year ended March 31, 2025, general and health insurers settled 33 million health insurance claims and paid an amount of Rs942 billion. An insured person who is aggrieved for non-settlement of claims may approach the insurance ombudsman. His decision would help in expeditious recovery. The IRDAI has exhorted insurance companies to strengthen their internal grievance redressal systems and make them robust and responsible. These systems should be reviewed periodically and necessary changes should be made as and when required, emphasising the need for improving accountability and resolving pending issues expeditiously.

Question: Is there any law in India to regulate AI? If not, are there any measures to manage the risks involved?

ANSWER: At present, there is no law in India to regulate Artificial Intelligence and deal with the risks associated with it. However, a high powered Government committee has highlighted the need to create an India-specific risk assessment framework based on empirical evidence of harm. It has proposed the creation of a grievance redressal mechanism to enable reporting of AI-related harms. The committee has further suggested that a graded liability system be put in place which would deal with the issues of accountability and the level of risks involved. The India AI Governance Guidelines have highlighted the need for industry to adopt voluntary measures with respect to privacy and security. According to these guidelines, existing laws applicable to information technology, data protection, consumer protection, and civil and criminal codes would be applicable to govern AI risks.

The guidelines have underlined the need for timely and consistent enforcement of relevant laws in order to build trust among the public and mitigate harm. It is suggested that current laws should be reviewed and regulatory gaps should be identified in relation to AI systems. Further, the adoption of balanced, agile and flexible frameworks is the need of the hour which would support innovation while minimising risks. In short, India's approach is to govern applications of AI by empowering the relevant sectoral regulators without affecting the underlying technology. Mitigating the risks of AI to society in general and individuals in particular is a key pillar of the governance framework.

Question: Are steps being taken to improve the quality of products manufactured in India? What measures are being taken by the Central and State Governments to support and sustain manufacturing units?

ANSWER: The Commerce and Industry Ministry has passed Quality Control orders to ensure that domestic consumers get the same quality products that are exported. According to the Minister, the QCOs have helped revive businesses and improved the quality of products to international standards. To illustrate, the Government has stepped in to promote better quality in case of cold-rolled grain oriented electrical steel which is a specialised product used in transformers. The Central Government has also simplified the process for compliance and ensured flexibility in implementing the regulations so that industry and consumers are not at a disadvantage and micro, small and medium enterprises are not adversely impacted.

There is now better Centre and State collaboration for effective implementation of incentives to boost the manufacturing sector. States have rationalised the process for providing plots of land to industries and the Central Government has supported this initiative by ensuring adequate infrastructure. Time bound approvals are also being given by State Governments so as to speed up the setting up of new manufacturing units. Incentives and subsidies offered by State Governments are to be provided to industry using the escrow mechanism whereby an independent authority certifies the eligibility for incentives and the payment is made automatically within the prescribed time. Environment related laws have also been implemented to attract more investment, sustain quality and promote ease of doing business.

The writer is a practising lawyer, specialising in corporate and fiscal laws of India.

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