The Role of IRDA

Can you tell me about the role of Insurance Regulatory and Development Authority of India (IRDAI) accordingly Section 14 of IRDA Act,1999?

[sumit]

Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous apex statutory body which regulates and develops the insurance industry in India.

It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India

Organisational Setup of IRDA:

IRDA is 10 member body consists of :

 One Chairman (For 5 Years & Maximum Age - 60 years )
 Five whole-time Members (For 5 Years and Maximum Age- 62 years)
 Four part-time Members (Not more than 5 years)

The chairman and members of IRDAI are appointed by Government of India.

Functions and Duties of IRDA:

Section 14 of IRDA Act, 1999 lays down the duties and functions of IRDA:

 It issues the registration certificates to insurance companies and regulates them.
 It protects the interest of policy holders.
 It provides license to insurance intermediaries such as agents and brokers after specifying the required qualifications and set norms/code of conduct for them.
 It promotes and regulates the professional organisations related with insurance business to promote efficiency in insurance sector.
 It regulates and supervises the premium rates and terms of insurance covers.
 It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports.
 It regulates the investment of policyholder's funds by insurance companies.
 It also ensures the maintenance of solvency margin (company's ability to pay out claims) by insurance companies.

Objectives of IRDA:
 To promote the interest and rights of policy holders.
 To promote and ensure the growth of Insurance Industry.
 To ensure speedy settlement of genuine claims and to prevent frauds and malpractices
 To bring transparency and orderly conduct of in financial markets dealing with insurance.