MULUND COLLEGE OF COMMERCE

ACADEMIV YEAR
2015-2016

ASHWITA S RAI
1510747
BCOM (BANKING AND INSURANCE)
SEMESTER VI

ETHICS
PROF. ALPA KATIRA

SR NO

TOPIC

INTRODUCTION

MISSION STATEMENT

COMPOSITION OF AUTHORITY

DUTIES POWERS AND FUNCTIONS

REGULATIONS

CONCLUSION

REFERENCES

PAGE NUMBER

INTRODUCTION
The Insurance Regulatory Development Authority is the controlling and regulatory
apex body in the Country for Insurance sector and its chairman and members are
appointed by Government of India. IRDA is situated at Hyderabad.
IRDA was established by an act enacted in Indian Parliament known as IRDA Act
1999 and was amended in 2002 to incorporate some emerging requirements as well
as to overcome some deficiencies in the entire process.
The major target of IRDA is to protect the interest of Insurance policyholders and
smooth functioning of Insurance Companies.

MISSIONS STATEMENT
a) To protect the interests of policyholders.
b) To promote, regulate and ensure growth of the insurance industry and for
matters connected therewith or incidental thereto.
c) Conduction of Insurance businesses across India in an ethical manner.

COMPOSITION OF AUTHORITY
As per the section 4 of IRDA Act 1999, Insurance Regulatory Development
Authority specify the Composition of Authority
The authority is Ten members team consisting of :i)
ii)
iii)

A Chairman
Five whole- time members
Four part- time members

The duties, powers and functions of IRDA have been specified under Section
14 of IRDA Act, 1999.
The IRDA Authority has the duty to promote, regulate and ensure orderly growth
of the insurance and re-insurance businesses across India, subject to the provisions
of this Act and any other additional law that is being enforced.
Without prejudice to the generality of the provisions contained in sub-section (1) of
IRDA Act, the powers and functions of the Authority shall include:
Issuing a certificate of registration to the applicant as well as modify, renew,
withdraw, suspend or cancel any such registration that is deemed unfit.
Protecting the interests of the policyholders in matters concerning assigning of
insurance policy, nomination by policyholders, settlement of insurance claim,
insurable interest, surrender value of policy and other terms and conditions based
on contracts of insurance.

Specifying requisite qualifications, practical training and code of conduct for

insurance intermediaries, insurance brokers and agents.
Specifying the code of conduct for surveyors and loss assessors.
Promotion of efficiency in the conduct of insurance business.
Promoting and regulating professional organizations connected with the
insurance and re-insurance business across India.
Levying fees, commission and other charges for carrying out the purposes of this
Act.
Calling for data or information from, undertaking inspection of, conducting
enquiries and investigations, conducting audit of the insurers, intermediaries,
insurance intermediaries and other organizations connected with the insurance
business.
Under section 64U of the Insurance Act, 1938 (4 of 1938), controlling and
regulation of the rates, advantages, terms and conditions etc that may be offered by
insurers (or Insurance Companies) in respect of general insurance business not so
controlled and regulated by the Tariff Advisory Committee.
Specifying the manner and form in which books of account shall be maintained
and statement of accounts, financial statements etc shall be rendered by insurers
and other insurance intermediaries.

Keeping a tab, exercising control and regulating investment of funds by

insurance companies.
Regulating the maintenance of margin of solvency by the Insurers.
Adjudication of disputes between insurers and intermediaries or insurance
intermediaries, hospitals, healthcare organizations or with customers.
To effectively supervise the functioning of the Tariff Advisory Committee.
Specifying the percentage of premium income of the insurer to finance schemes
for promoting and regulating professional organizations referred to in clause (f);
Specifying the percentage of life insurance business and general (or non-life)
insurance business to be undertaken by the insurance company in the rural or social
sector.
Exercising any such other powers that may be prescribed with passage of time.

The following Regulations have been notified in the Gazette of

India:

1) Appointed Actuary
2) Actuarial Report and Abstract
3) Assets, Liabilities, and Solvency Margin of Insurers
4) Licensing of Insurance Agents
5) General Insurance - Reinsurance
6) Registration of Indian Insurance Companies
7) Insurance Advertisement and Disclosure
8) Obligations of Insurers to Rural Social Sectors
9) The IRDA (Meetings)
10) The Insurance Advisory Committee (Meetings)
11) Investments (Life and General)
12) Statements of Accounts in a zipped file
13) The IRDA (Staff)
14) Surveyors and Loss Assessors

15) Reinsurance Life

16) Modified Investment Regulations
17) Third Party Administrators
18) IRDA (Preparation of financial statements and auditor's report of insurance
Companies) Regulations, 2002
19) IRDA (Protection of Policyholders' Interests) Regulations, 2002
20) IRDA (Insurance Brokers) Regulations, 2002
21) IRDA (Licensing of Corporate Agents Corporate Agents) Regulations, 2002
22) IRDA (Manner of Receipt of Premium ) Regulations, 2002
23) IRDA (Obligations of Insurers to Rural Social Sectors) Regulations, 2002
24) IRDA (Distribution of Surplus) Regulations, 2002
25) IRDA (Micro-Insurance) Regulations, 2005
26) Report of the KPN Committee on Provisions of the Insurance Act, 1938

28) Notification on reconstitution of the Insurance Advisory Committee

CONCLUSION

The Insurance Regulatory Development Authority of Indias (IRDA) emphasis on

quarterly reporting/monitoring of insurer solvency has enhance capital adequacy
and transparency.
IRDA should also seek to create a regulatory regime that promotes the most
efficient use of capital, eliminates avoidable micro-management of business
practices, allows companies to price their products prudentially, and level the
playing field between private and state-owned insurance companies. When markets
are competitive and responsive to consumer demand and preference, it is the
consumer that benefits in terms of lower cost and increased ability to manage risks.

REFERENCES

-https://en.wikipedia.org/wiki/IRDA
-www.slideshare.net

-VIPUL PRAKASHAN
-www.google.com