IRDAI | Insurance Regulatory and Development Authority of India | all about IRDAI

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• published: 17 Feb 2017
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Exam Kabila is providing latest Content in English and hindi. Important Lectures and Notes for Banking, bank, IBPS PO and Clerk, MBA, BBA, Other Finance Exams, Management Papers, SBI, Railways, SSC, LIC AAO, , IAS, UPSC, CDS, Railways, NDA, State PCS, CLAT and all other similar government competitive examinations. # Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India. #Establishment:  IRDA Act was passed upon the recommendations of Malhotra Committee report (7 Jan,1994), headed by Mr R.N. Malhotra (Retired Governor, RBI)  It was constituted by the Insurance Regulatory and Development Authority Act, 1999,[3] an act of Parliament passed by the government of India.  Main Recommendations - Entrance of Private Sector Companies and Foreign promoters & An independent regulatory authority for Insurance Sector in India  IRDA came into existence on 19th April, 2000, as statutory body, with its headquarters at New Delhi.  The headquarters of the agency were shifted to Hyderabad, Telangana in 2001. Objectives of IRDA:  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 of in financial markets dealing with insurance. Organisational Setup of IRDA: IRDA is a ten member body consists of :  One Chairman (For 5 Years & Maximum Age - 60 years )  Five whole-time Members (For 5 Years and Maximum Age- 62 years)  Four part-time Members (Not more than 5 years) The chairman and members of IRDAI are appointed by Government of India. Functions And Duties of IRDA: Section 14 of IRDA Act,1999 lays down the duties and functions of IRDA:  It issues the registration certificates to insurance companies and regulates them.  It protects the interest of policy holders.  It provides license to insurance 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 organisations related with insurance business to promote efficiency in insurance sector.  It regulates and supervise the premium rates and terms of insurance covers.  It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports.  It regulates the investment of policyholder's funds by insurance companies.  It also ensures the maintenance of solvency margin (company's ability to pay out claims) by insurance companies. Related News:  The IRDAI attempted to raise the foreign direct investment (FDI) limit in the insurance sector to 49 percent from its current 26 percent IRDA celebrated its formation day as Insurance Awareness Day on 19th April Worldwide World Insurance Awareness Day is celebrated on 28th of June.