BANKING

Currently in India the Banking regulatory framework is governed by the Banking Regulation Act, 1949. The Reserve Bank of India (RBI) is the chief body with regards to overseeing the implementation of Banking related rules and regulations as well as overseeing Banking operations

With regards to the rules and regulations related to opening and operating of Bank accounts by the visually challenged, the Order of the Court of Chief Commissioner for Persons with Disabilities issued on 5th September, 2005 holds true. This order came as a result of a case between Mr V.P. Singhania v/s Ministry of Finance. IBA and RBI.

The main highlights of this order are as follows:

• Visually challenged persons whilst being allowed to open an account with cheque book facility are required to give an undertaking to the bank that the cheque book be issued at his/her own risk.
• For cash withdrawals, the visually challenged person should personally present himself/herself before the bank official
• The facility of operating the Lockers is allowed to the visually impaired account holders without insisting on the joint account
• ATM facility is to be allowed on demand to the visually impaired customers as available to other customers and Banks have been asked to procure talking ATMs whenever they install new ones.

Thus whilst the order does guarantee some services there are many limitations on the free and fair use of these services for the visually challenged.

Insurance

In the area of the insurance sector in India, The Insurance Regulatory Act, 1938, as amended in 2002 is the main legal document governing insurance practices in the country. The Chief implementing agency with regards to overlooking the insurance sector in the country is the Insurance Regulatory and Development Authority (IRDA)

With regards to the insurance for the disabled, the 14th July 2000 IRDA order relating to Insurance Regulatory and Development Authority (Obligations of Insurers to Rural Social Sectors) Regulations outlines the following:

‘Every insurer, who begins to carry on insurance business after the commencement of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), shall, for the purposes of sections 32B and 32C of the Act, ensure that he undertakes the following obligations, during the first five financial years, pertaining to the persons in

Social sector, in respect of all insurers, -
(1) Five thousand lives in the first financial year;
(2) Seven thousand five hundred lives in the second financial year;
(3) Ten thousand lives in the third financial year;
(4) Fifteen thousand lives in the fourth financial year;
(5) Twenty thousand lives in the fifth year;

Where social sector is defined as

‘Social sector includes unorganised sector, informal sector, economically vulnerable or backward classes and other categories of persons, both in rural and urban areas’

And other categories of persons is defined as
“Other categories of persons” includes persons with disability as defined in the Persons with Disabilities (Equal Opportunities, Protection of Rights, and Full Participation) Act, 1995 and who may not be gainfully employed; and also includes guardians who need insurance to protect spastic persons or persons with disability;’

Whilst with regards to principle, Insurance companies admit that they do not have any discriminating or differential policies for persons with disabilities, several instances of denial of accident insurance and life insurance at higher premiums have been found.

These not only need to be addressed, but a universally acknowledged non-discriminating practice and policy with regards to Insurance services for the visually challenged need to be drawn up.