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Role and Function of Irda: Subject-Finance PPT by

IRDA is the independent statutory body that governs and regulates the insurance industry in India. It was established based on recommendations from the Malhotra Committee to introduce private sector companies and allow foreign investment in insurance. IRDA's key roles include registering insurance companies, protecting policyholders' interests, licensing insurance intermediaries, promoting professional insurance organizations, and regulating terms and premium rates. It also oversees financial reporting, investment of policyholder funds, solvency margins of insurers, and ensuring insurance coverage in rural areas.

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Meenakshi Seervi
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482 views13 pages

Role and Function of Irda: Subject-Finance PPT by

IRDA is the independent statutory body that governs and regulates the insurance industry in India. It was established based on recommendations from the Malhotra Committee to introduce private sector companies and allow foreign investment in insurance. IRDA's key roles include registering insurance companies, protecting policyholders' interests, licensing insurance intermediaries, promoting professional insurance organizations, and regulating terms and premium rates. It also oversees financial reporting, investment of policyholder funds, solvency margins of insurers, and ensuring insurance coverage in rural areas.

Uploaded by

Meenakshi Seervi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ROLE AND FUNCTION

OF IRDA
Subject- Finance
Ppt by
INDEX
• Introduction
• Objectives of IRDA
• Composition of IRDA
• Role of IRDA in the insurance sector
• Fuction OF IRDA
• Sectin 14 of the IRDA ACT, 1999 lays down the duties, powers and
functions of IRDA.
• Conclusion
INTRODUCTION
• 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 called Insurance
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.
• 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 to Hyderabad,
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.
• Carry forward the interests of the policyholders.
• Uphold the development of the Insurance Sector.
• Ensure quick resolution of claims.
• Prevent frauds and malpractices.
• Ensure fair conduct in the financial market when dealing with the insurance
Composition of IRDA
Section 4 of IRDA Act 1999;specify the composition of the Authority as
follows;
The ten member team should consist of,
• A Chairman;
• Five whole time members;
• Four part time members,
(All appointed by Government of India)
Role of IRDA in the insurance sector
• IRDA issues a certificate of registration to the life insurance company and
also renews,modifies,withdraws,suspends and cancels the registration.
• It levies fees and other charges for carrying out the purpose of the IRDA
Act.
• IRDA carries out functions like inspection,conducting inquiries and
investigations including and audit of the insurers,insurance
intermediaries and other organizations involved with the insurance
business.
• It also judges the disputes betweem insurers and intermerdiaries or
insurance intermediaries.
• It supervises the functioning of the Tariff Advisory committee.
• It specifies the percentage of life insurance and general insurance
business to be undertaken by the insurer in the rural or social sector.
• IRDA specifies the percentage of premium income of the insurer to
finance schemes for promoting and regulating professional
organzations referred to in clause.
• IRDA monitors the investment of funds by insurance companies and
governs the maintenance of margin of solvency.
• IRDA makes certain that the code fof conduct is followed by
surveyors and loss assessors.
• The autonomous body promotes efficiency in the conduct of
insurance business.
FUNCTION OF IRDA
• To safeguard the policyholder’s interest while ensuring a fair and just
treatment.
• To have a fair regulation of the insurance industry while ensuring
financial soundness of the applicable laws and regulations.
• To frame regulations periodically so that there is no ambiguity in the
insurance industry.
• To provide applicant with the registration certificate, renewal,
modification, withdrawal, suspension or cancellation of such registration;
• To explain the code of conduct applicable to the surveyors as well as to
assessors.
• To provide applicant with the registration certificate, renewal,
modification, withdrawal, suspension or cancellation of such registration;
• To protect the policyholders’ interests in case of assigning and nominating
policy holders, understanding insurance claims, insurable interests,
surrendering the value of the policy and other terms and conditions of
the insurance contract.
•  To mention required qualifications, code of conduct and practical training
for intermediary/insurance intermediaries and agents.
• To explain the code of conduct applicable to the surveyors as well as to
assessors.
• Ensure the efficiency and proficiency of the conduct of the insurance
business.
• Ensure the efficiency and proficiency of the conduct of the insurance
business.
Section 14 of the IRDA Act, 1999 lays down
the duties, powers and functions of IRDA. 
• Registering and regulating insurance companies.
• Protecting policyholders’ interests.
• Licensing and establishing norms for insurance intermediaries.
• Promoting professional organisations in insurance.
• Regulating and overseeing premium rates and terms of non-life insurance covers.
• Specifying financial reporting norms of insurance companies.
• Regulating investment of policyholders’ funds by insurance companies.
• Ensuring the maintenance of solvency margin by insurance companies.
• Ensuring insurance coverage in rural areas and of vulnerable sections of society.
CONCLUSION
• Insurance is an important aspect of the economy which requires
changes from time to time according to the needs of the people. An
individual should be aware of the opportunities that are available to
him in the form of health and life insurances. The Insurance
Regulatory and Development Authority of India plays a significant role
in ensuring that the interests of the policyholders remain secured.
Though competition has increased with necessary changes, the
objectives of the insurers and policyholders can be achieved.
THANK YOU

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