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IRDA IRDA

Objectives &Functions Objectives &Functions By:By:--

Reema Reema Chordiya Chordiya Sandeep Sandeep Choudhary Choudhary

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HistoryHistory

After the LPG policy many private companiesAfter the LPG policy many private companies

were permitted to transact insurance business,were permitted to transact insurance business,

hence it became necessary to establish anhence it became necessary to establish anauthority to regulate insurance operations.authority to regulate insurance operations.

Govt. constituted the IRA( InsuranceGovt. constituted the IRA( Insurance

Regulatory Authority), on interim basis, with aRegulatory Authority), on interim basis, with a

Chairman and two members representing lifeChairman and two members representing life

and general ins. Businessand general ins. Business

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Insurance Regulatory &Insurance Regulatory &

Development Development

AuthorityAuthority

IRDA Act was passed in 1999, which wasIRDA Act was passed in 1999, which was

enacted with effect from 19enacted with effect from 19thth April,2000.April,2000.

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ObjectivesObjectives

To protect the interests of policy holdersTo protect the interests of policy holders

To regulate, promote, and ensure orderlyTo regulate, promote, and ensure orderly

growth of insurance industrygrowth of insurance industry

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IRDA structureIRDA structure

A ChairpersonA Chairperson

Not more than 5 whole time members Not more than 5 whole time members

Not more than 4 part time members, all of Not more than 4 part time members, all of whom are appointed by the Centralwhom are appointed by the Central

GovernmentGovernment

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IRDA is advised byIRDA is advised by--

Under sec. 25 of the act IRDA has power toUnder sec. 25 of the act IRDA has power toseek assistance from a committee.seek assistance from a committee.

The IRDA gives notification for this purposeThe IRDA gives notification for this purpose

The Insurance Advisory Committee with notThe Insurance Advisory Committee with notmore than 25 members form field of more than 25 members form field of commerce, industry, transport, agriculture,commerce, industry, transport, agriculture,

consumer forums, surveyors, agents,consumer forums, surveyors, agents,intermediaries, employees association, LICintermediaries, employees association, LICand GIC members and representatives.and GIC members and representatives.

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Powers of IRDAPowers of IRDA

Register insurance companies, renew & cancel thereRegister insurance companies, renew & cancel there

registrationsregistrations

Issue licenses to agents and other intermediariesIssue licenses to agents and other intermediaries

Make regulations relating to the conduct of businessMake regulations relating to the conduct of business

of insuranceof insurance

Issue directions to insurersIssue directions to insurers

Adjudicate on disputes between insurers andAdjudicate on disputes between insurers andintermediaries and amongst the intermediariesintermediaries and amongst the intermediaries

Decide on disputes relating to claim settlementsDecide on disputes relating to claim settlements

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Functions of IRDAFunctions of IRDA

S pecify qualifications, code of conduct andS pecify qualifications, code of conduct and

practical training of intermediaries, including practical training of intermediaries, including

surveyors, loss assessorssurveyors, loss assessors

Take information, inspect documents, conductTake information, inspect documents, conduct

investigations including audit of insurers &investigations including audit of insurers &

intermediariesintermediaries

Control & regulate rates, advantages, terms &Control & regulate rates, advantages, terms &

conditions offered by insurersconditions offered by insurers

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Directions regarding how to maintain theDirections regarding how to maintain the books of accounts books of accounts

Regulate investments of fundsRegulate investments of funds

Regulate maintenance of solvency of insuringRegulate maintenance of solvency of insuringcompanycompany

S pecifying extent of business to be done inS pecifying extent of business to be done in

rural and urban sectorsrural and urban sectors Contents of advertisements to ensure that theyContents of advertisements to ensure that they

do not misguidedo not misguide

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Laying down time limits for insurers to makeLaying down time limits for insurers to make

decisions on proposal and on claimsdecisions on proposal and on claims

Appointment of Ombudsman(an officialAppointment of Ombudsman(an officialappointed to investigate complaints againstappointed to investigate complaints against

public organization) public organization)

S pecifying the percentage of life insurance andS pecifying the percentage of life insurance and

general insurance business to be undertaken bygeneral insurance business to be undertaken by

the insurersthe insurers

Exercising such other powers and performingExercising such other powers and performing

functions prescribed as per the Act.functions prescribed as per the Act.

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TH ANK YOU TH ANK YOU

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