INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA) Presented to Prof. E.HARI PRASAD SHARMA BySHRUTHI & JEEVITHA (MBA IV SEMESTER)
Insurance Regulatory & Development Authority is the controlling and regulatory apex body in the country for insurance sector and its chairman and members are appointed by Government of India. IRDA’s HQ is located at Hyderabad.
a) To protect the interests of the policyholdersb) To promote, regulate and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto c) Conduction of insurance businesses across India in an ethical manner. IRDA Group 1 7/1/2012 3
As per the section 4 of IRDA Act 1999, Insurance Regulatoryand Development Authority (IRDA, which was constituted byan act of parliament) specify the composition of AuthorityThe Authority is a ten member team consisting of (a) a Chairman; (b) five whole-time members; (c) four part-time members,(all appointed by the Government of India) 4
The insurance sector in India has been thrown open to the private sector. In the non life sector, IRDA would give preference to companies providing health insurance. All the powers presently exercised under the insurance act 1938 by the controller of insurance (COI) will be transferred to the IRDA The act gives statutory status for the interim insurance regulatory authority(IRA).set Up by the central government through a resolution passed in jan 1996
on foreign promoters, the maximum of 26 percent will always be operational. They will thus be unable to hold any equity beyond this ceiling at any stage.
Registration Protection Qualification Code of conduct Efficiency Fees Information Terms of business Books of accounts
Life Insurance Premium from Rs.400 crores in 1956 to Rs.201351 crores in 2007-08 with 29 % growth General Insurance Premium from Rs.200 crores in 1972 to Rs.27823 crores in 2007- 08 with 11.72 % growth
Irda (obligations of insurers to rural sectors) regulation, 2000 Irda (investments) regulation, 2000 Irda (third party administrators) regulation 2001 Irda (protection of policyholder’s interest ) regulations, 2002 Irda ( licensing of corporate agents) regulations 2002
Detariffing in General Insurance from 1.1.2007 leading to greater price war & new products in future Banks entering insurance market through joint ventures with foreign finance majors 12
Increasing Role of Insurance Brokers Bank assurance Corporate Agency IT intervention & uses 13
Greater Job Opportunities For thousands of Insurance Managers, IT Professionals For lacs of Insurance Advisors For Insurance Professionals For Risk Managers For Underwriters For claim Settlements 14
Increasing No. of Insurance companies & Intermediaries Increasing Awareness about Insurance Growth in GDP Increasing No. of Middle Class 15
Vast No. of uninsured population Underinsurance Untapped potential for General Insurance 16
Increasing awareness about Health Insurance Increasing awareness about Personal Line Insurance like House, Shop, Personal Accident Market flooded with new insurance products 17
Presented by : Jeevitha & Shruthi MBA IV SEM VIMS