01/06/2022

Prepared by: P Biswaraj

College Name- Motilal Nehru National institute of Technology Allahabad,
Prayagraj
MBA Summer Internship
Submitted to: Ms. Ritika Jain (Shriram life Insurance)

IRDAI:(Insurance Regulatory and Development Authority of India)

 The Insurance Regulatory and Development Authority of India (IRDAI)
is an autonomous and statutory body which is responsible for managing
and regulating insurance and re-insurance industry in India.
 IRDAI is a 10-member body- a chairman, five full-time members and
four part-time members (all are appointed by the Government of India). It
was constituted under an Act of Parliament in 1999 and the agency’s
headquarters is in Hyderabad.

Objective of IRDA:
The main objective of the Insurance Regulatory and Development Authority of
India is to enforce the provisions under the Insurance Act. The mission
statement of the IRDA is:
 To protect the interest and fair treatment of the policyholder.
 To regulate the insurance industry in fairness and ensure the financial
soundness of the industry.
 To regularly frame regulations to ensure the industry operates without
any ambiguity.
 Keep a check on scams and frauds by setting standards and conduct
vigilance.

Functions of IRDAI:
 Grant, renew, modify, suspend, cancel or withdraw registration
certificates of the insurance company.
 Protecting the interests of the policyholder in matters concerning the
grant of policies, settlement of claims, nomination by policyholders,
 insurable interest, surrender value of the policy and other terms and
conditions of the policy.
 Specify code of conduct, qualifications and training for intermediary or
insurance agents.
 IRDAI monitor that no insurance company can deny the claim on their
free will unless it falls beyond the scope of the cover. Thus, protecting the
interest of policy holders at the time of issuance of the policy claims and
cancellation of the policy.
 IRDAI clearly state that the code of conduct for all insurance companies,
loss accessors and surveyors. thus, all players come together to work on a
single tune and compete with other in fair manner.
 IRDAI provides a resolution in case of any dispute emerged between the
insurer and the policy holder.
 Controls and regulates the rates of insurance to prevent unwanted price
hikes in the insurance premium.

 1. IRDA monitors that no insurance company can deny the claim on

their free will unless it
 falls beyond the scope of the cover. Thus, protecting the interest of
policyholders at the
 time of issuance of the policy claims, and cancellation of the policy.
 2. IRDA clearly states the code of conduct for all insurance
companies, loss assessors and
 surveyors. Thus, players come together to work on a single tune and
compete with each
 other simply on the basis of discounts.
 3. IRDA conducts investigations, calls for both annual and need-based
audit so as to prevent
 any misdeed.
 4. To bring equality for customers IRDA, regulates the terms and rates
offered by the
 insurance companies.
 5. IRDA provides a resolution in case of any disputes emerged
between the insurer and the
 policyholder.
 6. IRDA prevents insurers from quoting rates as per their convenience
and hence it limits the
 major risks to the Tariff Advisory Committee.
 7. IRDA sets the minimum percentage limit for the insurers to carry
for both life and non -
 life business. Thus, helps in the development of both rural and urban
sectors
Some New Amendments/updates issued by IRDAI:
o Insurance (Amendment) Act, 2021, - The Insurance Amendment
Act 2021 aims to increase the influx of foreign capital into the
Indian private insurers by increasing the FDI limit from 49% to
74% in insurance. The increased investment limit is hoped to
incentivize competition and thereby growth. 
o insurance Regulatory and Development Authority of India
(Insurance Advertisements and Disclosure) Regulations, 2021
To ensure that the insurers, intermediaries or insurance
intermediaries adopt fair, honest and transparent practices while
issuing advertisements and avoid practices that tend to impair the
confidence of the public. (ii) To ensure that the advertisement is
relevant, fair and in simple language enabling informed decision
making.
o IRDAI Health Insurance Amendment 2016, - On July 12th,
2016, the Insurance Regulatory & Development Authority of India
(IRDA) announced a new set of Health Insurance Regulations
which will have a positive impact for insured individuals. These
new revised regulations replace those which were last set in 2013
and will bring about some changes in the health insurance industry.
 Health Insurance Companies Can Now Offer Pilot Products.
 Data Disclosure to Improve Transparency.
 Early Buyers & Health-Conscious Customers to Get
Discount.
 Developments in health insurance industry due to COVID-19
pandemic-
The first and foremost development that happened in the insurance
space following the pandemic was the inclusion of treatment for COVID-
19 under health insurance policies.
Further, some changes were even implemented in the underwriting
rules for issuing health insurance policies to the customers. Keeping in
mind the nation-wide lockdown, the regulator directed all insurers to
issue health insurance policies to customers through telemedical wherever
possible if conducting a mandatory physical medical test was not
possible. The authority even allowed the use of e-KYC for renewal or
issuing of new policies to the customers.
  The IRDAI has increased the investment limit by insurance companies to
invest in the financial sector to 30% from 25% freeing up more money
for investments in stocks and bonds in the sector.
The exposure limit for financial and insurance activities will now
stand at 30% of investment assets for all insurers. Investment in housing
financing companies and infrastructure financing companies will be a
part of this.
6- IRDAI Re-insurance Regulations 2018
The 2018 Regulations came into force on 1st January 2019 and
consolidate the provisions governing reinsurance business in India into
one set of applicable regulations along with introducing new
requirements for both life and general reinsurance business.
 Registration Of Insurance Companies in India:
The IRDAI issued a press release on 26 April 2022wherein they stated
that with the objective of ensuring ease of doing business in the insurance
sector, for both global and domestic investors, they have taken a major
step in setting out a new mechanism for processing the request and
application for registration of new insurance company under the IRDAI,
regulations 2000.the new process would bring down the turnaround time
for incorporation of a new entity for insurance related activities.

 Insurance Regulatory and Development Authority of India (Registration

of Insurance Marketing Firm) (Amendment) Regulations, 2019.-
The objective of these Regulations is to amend the Insurance
Regulatory and Development Authority of India (Registration of
Insurance Marketing Firm) Regulations, 2015 to provide an enabling
environment to the Insurance Marketing Firms in order to help them
achieve the objective of increasing insurance penetration in the country.
 IRDA monitors that no
insurance company can
deny the claim on their free
will unless it
 falls beyond the scope of the
cover. Thus, protecting the
interest of policyholders at
the
 time of issuance of the
policy claims, and
cancellation of the policy

 IRDA monitors that no

insurance company can
deny the claim on their free
will unless it
 falls beyond the scope of the
cover. Thus, protecting the
interest of policyholders at
the
 time of issuance of the
policy claims, and
cancellation of the policy

 IRDA monitors that no

insurance company can
deny the claim on their free
will unless it
 falls beyond the scope of the
cover. Thus, protecting the
interest of policyholders at
the
 time of issuance of the
policy claims, and
cancellation of the policy