PIB- IRDA and its role

8/7/2019 PIB- IRDA and its role

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IntroductionIntroduction

Insurance Regulatory and DevelopmentInsurance Regulatory and Development

Authority (IRDA) in 1999.Authority (IRDA) in 1999.

With the birth of IRDA, the Govt. amendedWith the birth of IRDA, the Govt. amended

the Insurance Act, 1938, the Lifethe Insurance Act, 1938, the Life

Insurance Corporation Act, 1956, and theInsurance Corporation Act, 1956, and the

General Insurance Business Act 1972.General Insurance Business Act 1972.


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IntroductionIntroduction

It may be called the InsuranceIt may be called the Insurance

Regulatory Development Authority Act,Regulatory Development Authority Act,

1999.1999.

It Extend to the Whole of India.It Extend to the Whole of India.

Its controlled by Central Govt.Its controlled by Central Govt.

IRDA is like asIRDA is like as Company.Company.


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Composition of AuthorityComposition of Authority

The authority shall consist of the followingThe authority shall consist of the following

membermember

A ChairpersonA Chairperson

Not more than five wholeNot more than five whole--time membertime member

Not more than four part time member.Not more than four part time member.

Duration or tenure of member.Duration or tenure of member.


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Duties, power and FunctionDuties, power and Function

1. Authority shall have the duty to regulate,1. Authority shall have the duty to regulate,

promote, and ensure orderly growth ofpromote, and ensure orderly growth of

Insurance business and ReInsurance business and Re--insuranceinsurancebusiness.business.


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Duties, power and Function (Duties, power and Function (Sub sec (1)Sub sec (1)))

1.1. Issue to the applicant a certificate ofIssue to the applicant a certificate of

registration, renew, modify, suspend orregistration, renew, modify, suspend or

cancel such registration.cancel such registration.

2.2. Protection of interest of the policyholder inProtection of interest of the policyholder in

matter concerningmatter concerning assigning of policy,assigning of policy,

nomination of policy, insurable interest,nomination of policy, insurable interest,

settlement of insurance claim, surrendersettlement of insurance claim, surrendervaluevalue andand other term and conditionother term and condition ofof

contract of Insurancecontract of Insurance


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3.3. Specifying requisite qualification, code ofSpecifying requisite qualification, code of

conduct and practical training for insuranceconduct and practical training for insurance

agent.agent.

4.4. Specifying the code of conduct for surveyors andSpecifying the code of conduct for surveyors andloss assessors.loss assessors.

5.5. Promoting efficiency in the conduct of insurancePromoting efficiency in the conduct of insurance

business.business.

6.6. Promoting and regulating professionalPromoting and regulating professional

organizations connected with insurance and reorganizations connected with insurance and re--

insurance businessinsurance business


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7.7. Fees and other charges for carrying outFees and other charges for carrying out

the purposes of this Act.the purposes of this Act.

8.8. Calling for information form, undertakingCalling for information form, undertaking

inspection of, conducting enquiries andinspection of, conducting enquiries and

investigation including audit of insurers,investigation including audit of insurers,

insurance intermediaries (agents).insurance intermediaries (agents).

9.9. Specifying the form and manner in whichSpecifying the form and manner in whichbooks of account shall be maintained.books of account shall be maintained.


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10. Regulating investment of fund by10. Regulating investment of fund by

insurance companies.insurance companies.

11. Regulating maintenance of margin of11. Regulating maintenance of margin of

solvency.solvency.

12. Handling the disputes b/w insurers and12. Handling the disputes b/w insurers and

insurance intermediaries.insurance intermediaries.

13. Supervising the functioning ofTariff13. Supervising the functioning ofTariff

Advisory committee.Advisory committee.


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Duties, power and FunctionDuties, power and Function (Sub sec (1))(Sub sec (1))

14. Specifying the %age of premium income of14. Specifying the %age of premium income ofthe insurer to finance scheme for promotingthe insurer to finance scheme for promotingprofessional organization.professional organization.

15 Specifying the life insurance business and15 Specifying the life insurance business andgeneral insurance business to begeneral insurance business to beundertaken by insurer in the rural or socialundertaken by insurer in the rural or socialsector.sector.

16. Exercise such other power may be16. Exercise such other power may beprescribed.prescribed.


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Grants by CentralGovt.Grants by CentralGovt.

Fund called IRDA fund.Fund called IRDA fund.

Accounts and AuditAccounts and AuditAudited by the comptroller and AuditorAudited by the comptroller and Auditor--

general of India.general of India.

Documents

PIB- IRDA and its role