2023 2024 Student Forum > Management Forum > Main Forum

28th July 2016, 03:19 PM
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Join Date: Aug 2012
Re: The Role of IRDA

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.

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