>>IRDA - Role, Objectives and Functions>>
👉🏻IRDA - Insurance Regulatory Development and Authority is the statutory, independent and apex body that governs and supervise the Insurance Industry in India.
👉🏻It was constituted by Parliament of India Act calledInsurance Regulatory and Development Authority of India (IRDA of India) after the formal declaration of Insurance Laws (Amendment) Ordinance 2014, by the President of India Pranab Mukherjee on December 26,2014.
💁🏻Establishment:
👉🏻IRDA Act was passed upon the recommendations of Malhotra Committee report (7 Jan,1994), headed by Mr R.N. Malhotra (Retired Governor, RBI)Main Recommendations - Entrance of Private Sector Companies and Foreign promoters & An independent regulatory authority for Insurance Sector in India.
👉🏻In April,2000, it was set up as statutory body, with its headquarters at New Delhi.
The headquarters of the agency were shifted toHyderabad, 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 aten 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.
💁🏻The present Chairman of IRDAI is Mr T.S Vijayan.
👉🏻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.
