Insurance Regulatory and Development Authority (IRDA)
IRDA is the regulator of the insurance industry in India and was constituted by an Act of Parliament in 1997. It has the following mission:
To protect the interests of the policy holders. To regulate, promote and ensure orderly growth of the insurance industry.
It is constituted by a 10 member team consisting of :
Chairman
Five whole time members
Four part time members
Duties, Powers and Functions of IRDA
Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of IRDA which are :
1. issuance of certificate of registration, renewal, modification, withdraw, suspend or
cancel such registration;
2. Protection of the policyholders interest;
3. Laying down qualifications, training and code of conduct for intermediaries;
4. Laying down code of conduct for Surveyors;
5. Promote efficiency in the conduct of insurance business;
6. Promoting and regulating professional organisations connected with the insurance
and re-insurance business;
7. Levying fees and other charges for carrying out the purposes of this Act;
8. Calling for information, conduct of inspection, audit of all organizations associated
with the insurance business;
9. Control of the rates, terms etc. offered by general insurers in respect of business not
controlled by Tariff Advisory Committee (TAC);
10. Specifying the manner in which accounts should be maintained by insurers and
intermediaries;
11. Regulation of investment of funds by insurers ;
12. Regulation of maintenance of solvency margins;
13. Act as a dispute settlement authority between insurers and intermediaries;
14. Supervise TAC;
15. Specify the percentage of premium income to be utilised for promoting organizations mentioned in clause 6 ;
16. Specify the rural sector obligation of insurers;
17. Exercise any other powers as prescribed.
