Insurance Regulatory Development Authority of India – IRDAI

What is IRDAI -Insurance Regulatory Development Authority of India?

The Insurance Regulatory and Development Authority of India is famously known as IRDAI. IRDAI is an autonomous body in India for Insurance regulation and promotion. IRDAI was established in India by the Insurance Regulatory and Development Authority Act, 1999. IRDAI is the only regulatory body for insurance in India. IRDAI never sell Insurance to anyone. To become an insurance agent IRDAI exam is mandatory in India.

Insurance Regulatory Development Authority of India

Insurance Regulatory Development Authority of India

IRDAI –  Insurance Regulatory Development Authority of India work as a channel between Insurance companies, Agents and Also Insurance Buyer.  IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India. The current chairman of IRDAI is Subhash Chandra Khuntia.

History of Insurance in India

Oriental Life insurance company was the first company that started life insurance in India. It was established in 1818. To make domination of British companies in India, The British Insurance Act was enacted in 1870. After independence of India, the nationalization of insurance was done. The ordinance for it was passed in 1956. Because of this LIC life insurance corporation was established. It absorbed more than 245 insurance companies at that time.

Liberalization of the insurance industry in India

As we discussed the government of India nationalized the insurance industry in 1956. The monopoly of LIC was in the market till 1999. After this, the liberalization of Insurance industry is started. It created a path for many private Insurance players to come into the insurance industry.

Functions of IRDAI

  • Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations of Insurance companies
  • Approve the insurance plan of Insurance companies
  • Protecting policyholder interests
  • Also protection against frauds
  • Create awareness among people for insurance
  • Regulating rates, advantages, terms and conditions which may be offered by insurers not covered by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)
  • Specifying the percentage of life- and general insurance business undertaken in the rural or social sector
  • Regulating company investment of funds
  • Regulating rates, advantages, terms and conditions which may be offered by insurers not covered by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938)

Read Other articles on Insurance in India only at Insuregrams.

Leave a Reply