IRDA

Objectives &Functions
By:-
Reema Chordiya
Sandeep Choudhary
 History
 After the LPG policy many private companies
were permitted to transact insurance business,
hence it became necessary to establish an
authority to regulate insurance operations.
 Govt. constituted the IRA( Insurance
Regulatory Authority), on interim basis, with a
Chairman and two members representing life
and general ins. Business
 Insurance Regulatory &
Development
Authority

 IRDA Act was passed in 1999, which was

enacted with effect from 19th April,2000.
 Objectives
 To protect the interests of policy holders
 To regulate, promote, and ensure orderly
growth of insurance industry
 IRDA structure
 A Chairperson
 Not more than 5 whole time members
 Not more than 4 part time members, all of
whom are appointed by the Central
Government
 IRDA is advised by-
 Under sec. 25 of the act IRDA has power to
seek assistance from a committee.
 The IRDA gives notification for this purpose
 The Insurance Advisory Committee with not
more than 25 members form field of
commerce, industry, transport, agriculture,
consumer forums, surveyors, agents,
intermediaries, employees association, LIC
and GIC members and representatives.
 Powers of IRDA
 Register insurance companies, renew & cancel there
registrations
 Issue licenses to agents and other intermediaries
 Make regulations relating to the conduct of business
of insurance
 Issue directions to insurers
 Adjudicate on disputes between insurers and
intermediaries and amongst the intermediaries
 Decide on disputes relating to claim settlements
 Functions of IRDA
 Specify qualifications, code of conduct and
practical training of intermediaries, including
surveyors, loss assessors
 Take information, inspect documents, conduct
investigations including audit of insurers &
intermediaries
 Control & regulate rates, advantages, terms &
conditions offered by insurers
 Directions regarding how to maintain the
books of accounts
 Regulate investments of funds
 Regulate maintenance of solvency of insuring
company
 Specifying extent of business to be done in
rural and urban sectors
 Contents of advertisements to ensure that they
do not misguide
 Laying down time limits for insurers to make
decisions on proposal and on claims
 Appointment of Ombudsman(an official
appointed to investigate complaints against
public organization)
 Specifying the percentage of life insurance and
general insurance business to be undertaken by
the insurers
 Exercising such other powers and performing
functions prescribed as per the Act.
THANK YOU