Insurance Regulatory Development Authority of India (IRDAI)
IRDAI – Insurance Regulatory Development and Authority of India is the statutory, independent and apex body that governs, regulates and supervises the Insurance Industry in India. It was constituted in the year 2000 by Parliament of India Act called IRDAI Act, 1999. Presently IRDAI headquarters is in Hyderabad.
IRDAI is a ten member body consists of
· One Chairman ( For 5 years & Maximum age – 60 years)
· Five whole-time Members (Not 5 years and Maximum Age – 62)
· Four part-time Members (Not more than 5 years)
· The chairman and members of IRDA are appointed by ;the Government of India
· 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 in financial markets dealing with insurance.
Section 14 of IRDAI Act, 1999 lays down the duties and functions of IRDAI:
· It issues the registration certificates to Insurance Companies and regulates them.
· It provides license to insurance to 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 organizations related with insurance business to promote efficiency in insurance sector
· It regulates and supervises the premium rates and terms of insurance covers.
· It also ensures the maintenance of solvency margin (company’s ability to pay out claims) by insurance companies.