Objectives of IRDA

The key objectives of the IRDA include promotion of competition and ensuring the financial security of the insurance market. The IRDA Act, 1999 has amended the Insurance Act, 1938, LIC Act 1956, and General Insurance Business Nationalisation Act, 1972 (GIBNA). The effect is the removal of the monopoly of the government corporations (LIC and GIC) in the insurance business and to promote competition among the insurers in the public and private sectors.

Composition of Authority under IRDA Act, 1999 As per the section 4 of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) is a ten member team consists of: 1.A Chairman, 2.Five whole - time members 3.Four part-time members.

Objectives The Insurance Regulatory and Development Authority Act, 1999 intends to achieve the following objectives:-

1. To establish an authority to protect the interests of the insurance policy holders.
2. To regulate, promote and ensure regular growth and development of insurance industry in India.
3. To open the insurance sector for private sector.
4. To ensure continued financial soundness and solvency.
5. To regulate insurance and re-insurance companies.
6. To eliminate dishonest and unhealthy competition.
7. To supervise the activities of intermediaries.
8. To promote clean and orderly conduct of Insurance Business
9. To bring about changes to Insurance Laws.

Duties and Powers of IRDA 

1. To regulate, promote and ensure orderly growth of the insurance business.
2. To exercise all powers and functions of the controller 
3. To protect the interest of the policy holders in settlement of claims and terms.
4. To promote and regulate professional organizations connected with insurance business.
5. To call for information from insurance organisations, intermediaries and other connected persons.
6. To undertake inspection and conduct investigations including audit of the insurer, intermediaries and other connected organisations and persons.
7. To control and regulate the rates and terms and conditions that may be offered by the insurers in respect of general insurance matters.
8. To prescribe the manner and form industrial accounts will be maintained and submitted by insurers and intermediaries.
9. To regulate investment of funds.
10. To regulate margins of solvency.
11. To adjudicate disputes between insurers and intermediaries.

Mock tests for UGC NET Exam

Try Online Classroom Program and enjoy unlimited access to all live courses and Mock tests

Thanks.
Score better. Go BYJU'S Exam Prep.