Insurance Regulatory Development Authority of India
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
The chairman and members of IRDA are
appointed by ;the Government of India
To promote the interest and rights of
To promote and ensure the growth of
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.