1. The IRDA Act was passed in 1999 to regulate and promote the orderly growth of the insurance industry and protect policyholders' interests. 2. IRDA was established as the insurance regulatory authority, headed by a chairperson and up to 5 whole-time and 4 part-time members appointed by the central government. 3. IRDA's duties include registering and licensing insurance companies and intermediaries, approving products, monitoring companies' functioning, formulating regulations, and promoting consumer education.

1. Welcome

2.  IRDA Rules in
Insurance sector.
 Capital structure of
Insurance Companies.

3.  Gopika
 Athira N.R
 Hairunniza
 Shilpa V.S
 Mirsana V.M
 Neethu Appu
 Vishnu N.K

4.  TheAct was passed in 1999.
"To Protect the interests of the
policyholders, to regulate, promote and
ensure orderly growth of the insurance
industry and for matters connected
therewith or incidental thereto. "

6. IRDA Rules in

7.  Central Govt. by notification for the purpose
of the act, the authority called IRDA
established.
 It shall be a body corporate having perpetual
succession and a common seal with power, to
acquire hold and dispose of property, both
movable and immovable and to contract and
by the name sue or be sued.
 The head office shall be at such place as the
Central Govt. may decide.
 It may establish offices at other place in
India.

8. As per the section 4 of IRDA Act 1999,
IRDA specify the composition of authority as
a ten member team consisting of,
A Chairperson.
 Not more than five whole – time members.
 Not more than four part – time members.
(All appointed by the Govt. Of India)

9. The Authority shall have the duty to
regulate, promote and ensure orderly growth of
the insurance business and re-insurance
business.
1. Registration (licensing) including renewal of
registration of insurance companies.
2. Licensing of insurance intermediaries such as
agents, surveyors and loss assessors, third
party administrators, brokers, etc.
3. Official approval of agent’s training
institutions.

10. 4. Monitoring all non-tariff products including
pricing of products, terms and conditions there
of etc.
5. Supervision of the functioning of the
companies and intermediaries including
review of companies annual statement.
6. Formulation of regulations.
7. Enforcement of discipline.
8. Consumer education and assistance.

11. The main regulations that regulate the
insurance business are,
1. The Insurance Act 1938
2. The Life Insurance Corporation Act 1956
3. The General Insurance Business
(Nationalisation) Act 1982
4. The Marine Insurance Act 1963, and
5. The Motor Vehicles Act 1988.
(The Indian Contract Act 1872, governs
most of the aspects of the insurance
contract.)

12. According to Sec. 7 of The Amended
Insurance Act 1938, every insurer shall deposit
with RBI, either in cash or in approved
securities estimated at the market value on the
day of deposit, to carry insurance business.
1. In case of life insurance, a sum of 1% of total
gross premium, not exceeding Rs. 10 crores.
2. In case of general insurance, a sum of 3% of
total gross premium, not exceeding Rs. 10
crores.
3. In case of re-insurance, a sum equivalent to
Rs. 20 crores.

13. 4. In case of marine insurance only and exclusively
to country craft or its cargo or both, only
Rs.100000
(These deposits will be held by the RBI
though the credit of the insurer and are
returnable to the insurer in the event the
provisions of the Insurance Act mandate such
return.)

14. Every insurer is required to invest and
keep invested certain amount of assets as
determined under Insurance Act. The funds
of the policyholders cannot be invested
outside India.
1. Life insurer is required to invest its all time
assets.
2. The value of which is not less than the sum
of the amount of its liabilities to
policyholders.

15.  The Insurance Advisory Committee shall
consist of not more than twenty-five
members excluding ex-officio members to
represent the interests of commerce,
industry, transport, agriculture.
 The Chairperson and the members of the
Authority shall be the ex officio Chairperson
and ex officio members of the Insurance
Advisory Committee.

16.  The objects of the Insurance Advisory
Committee shall be to advise the Authority
on matters relating to the making of the
regulations under section 26.
 Without prejudice to the provisions of sub-
section (4), the Insurance Advisory
Committee may advise the Authority on such
other matters as may be prescribed.

17. Capital Structure of

18.  Companies proposes carry on life insurance
or general insurance business have a paid up
equity capital of Rs. 100 crores or Rs. 200
crores.
 Companies exclusively proposes to carry on
re-insurance business should have a paid up
capital of Rs.200 crores.

19. There are two forms of capital,
EQUITY CAPITAL and DEBT CAPITAL.
 Itrefers to proposional equity capital and
debt capital in the total capital. It consists
of,
 Equity share capital contributed by the share
holders.
 Retained earnings which represents the
accumulated profits of the company.

20.  Debtcapital refers to the borrowed capital
of the insurance company.
 Company may borrow money from public through
the issue of debentures.
 It is very important to keep capital structure
balanced.
(The proportion between the own capital
and debt capital should be a balanced one,
to provide safety to the investment and
certainty of return.)

21. 1. An insurance company is an ongoing
operation.
2. Paid up claim varies from year to year.
3. Insurance industry is very co.......
4. Only serious players should play in the
market.

22.  Public company should have only,
 Ordinary shares.
 One face value for one share.
 Same paid up value.