Insurance Regulatory and Development Authority of India (IRDA).

Insurance Regulatory and Development Authority of India (IRDA) Updated on

February 27, 2019, 1018 views IRDA stands for insurance Regulatory and
Development Authority of India. It is an autonomous and the statutory body
tasked with regulating and promoting insurance and reinsurance in the
country. IRDA was constituted by the Insurance Regulatory and Development
Authority Act - IRDA Act, 1999 and has its headquarters in Hyderabad,
Telangana. In the recent times, IRDA has moved on to a more digital platform
to help and cater the needs of both the Insurance companies, agents and
policyholders.

Structure of IRDA:

IRDA is a ten-member body that consists of: One Chairman (for five years
and maximum age of 60 years) Five whole-time members (for five years and
maximum age of 62 years) Four part-time members (not more than five years)
The chairman and the members of IRDA are appointed by the Government of
India. Current Chairman of IRDA is Mr Subhash Chandra Khuntia.

Objectives of IRDA:

To promote the interests and rights of the policyholders.

To promote and monitor the growth of the insurance industry.

To prevent frauds and misselling of insurance product and ensure speedy

settlement of genuine claims

To bring transparency and proper code of conduct in financial markets dealing

with insurance.

Functions and Duties of IRDA:

The IRDA Act gives the authority its functions and powers. Section 14 of the
Act contains the scope of powers of the Insurance Regulatory and
Development Authority of India to regulate the insurance and reinsurance
industry.
The IRDAI has the authority to issue registration certificates to any applicant.
The also may re-issue, renew, cancel or modify these certificates as per their
discretion.

According to Section 14 of IRDA Act of 1999, the agency has the following
functions and duties:

 Issuing the registration certificates to insurance companies and regulate

them
 Protect the interests of the policyholders
 Provide licenses to insurance intermediaries like agents and brokers
after stating the required qualifications and set guidelines for their code
of conduct.
 Promote and regulate professional organizations related to insurance to
enhance the development of the sector
 Regulate and supervise the premium rates and terms of the insurance
policies
 Specify the conditions and manners by which the insurance companies
have to present their financial reports
 Regulate the investment of the policyholders’ funds by the insurance
companies.
 Ensure the maintenance of the solvency margin i.e. the ability of an
insurance company to pay out claims.