The term “IRDA“ refers to the Insurance Regulatory and Development Authority, which functions as the regulator of India’s insurance industry. IRDA’s responsibilities include overseeing the operations of Life Insurance and General Insurance companies in the country, to safeguard the interests of policyholders and regulate the insurance sector. The IRDA’s primary objective is to regulate the industry and ensure the protection of policyholders. To understand more about the role and functions of the IRDA in the Indian insurance sector, continue reading to discover more about this apex body of insurance providers in India.
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The oversight of the insurance industry in India is the responsibility of the Insurance Regulatory and Development Authority (IRDA), which acts as a regulatory body. IRDA’s primary role is to develop and enforce rules and regulations for insurance companies, protect policyholders, and foster growth in the industry. The IRDA regularly issues advisories to insurers in response to changes in regulations and works to promote efficiency in the insurance business while controlling rates and charges. This article explores the functions, features, and benefits of the IRDA.
Until 2000, the insurance industry in India was regulated by the Government. However, the Malhotra Committee report of 1999 recommended the creation of a separate regulatory body for the industry. Hence, the Insurance Regulatory and Development Authority (IRDA) was established in 2000, and it began accepting applications from insurance companies for registration. The IRDA has set up regulations under Section 114A of the Insurance Act, of 1938, which cover the registration of insurance companies and safeguarding the interests of policyholders.
The Insurance Regulatory and Development Authority of India aims to enforce the provisions of the Insurance Act.
The IRDA has a mission statement with three objectives:
The Indian insurance industry dates back to the 1800s and has progressed with a focus on policyholder protection.
In addition to the above core functions, the IRDA performs various other functions to ensure the policyholder’s interest is protected.
The IRDA, which serves as the top regulatory body for the insurance industry, prioritizes the policyholder’s interests in its main activities. IRDA goal is to establish clear and unbiased regulations that promote the industry’s fairness and financial stability without favoring any particular insurance company.
The Insurance Regulatory and Development Authority of India oversees and regulates various types of insurance policies in the country, which can be broadly classified into Life Insurance and General Insurance. The different types of insurance policies that fall under these categories are:
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