INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA

12th March, 2022 Economy

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Context:

The government appointed former Financial Services Secretary Debasish Panda the new Chairman of the Insurance Regulatory and Development Authority of India (IRDAI).

IRDAI:

About: The Insurance Regulatory and Development Authority of India (IRDAI) is an independent statutory body that was set up under the IRDA Act,1999. It is under the jurisdiction of Ministry of Finance.
Mandate: It is tasked with regulating and licensing the insurance and re-insurance industries in India.
Aim: To protect the interests of the insurance policyholders and to develop and regulates the insurance industry. It issues advisories regularly to insurance companies regarding the changes in rules and regulations.
HQ: The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
Composition: IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.

Main Objectives:

To ensure fair treatment and protect the interests of the policyholder.
To regulate the insurance companies and ensuring the industry’s financial soundness.
To formulate standards and regulations so that there is no ambiguity.

Functions:

Granting, renewing, cancelling or modifying the registration of insurance companies.
Levying charges and fees as per the IRDA act.
Conducting investigation, inspection, audit, etc. of insurance companies and other organizations in the insurance industry.
Specifying the code of conduct and providing qualifications and training to intermediaries, insurance agents etc.
Regulating and controlling the insurance premium rates, terms and conditions and other benefits offered by insurers.
Provides a grievance redressal forum and protecting interests of the policyholder.

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