The Insurance Regulatory and Development Authority (IRDA) is India's insurance regulatory body established in 1999 by the IRDA Act. IRDA regulates, promotes, and ensures the orderly growth of the insurance sector. It aims to protect policyholders' interests, promote an ethical insurance industry, and regulate and supervise insurers, agents and other insurance intermediaries. IRDA has powers to issue certificates, specify conduct codes and qualifications, control rates and terms, adjudicate disputes, and more. It is headed by a 10-member board including a Chairman and members appointed by the government.

1. IRDA
(Insurance Regulatory and Development
Authority)

2. Introduction
• The IRDA (Insurance Regulatory and Development Authority) is the national regulatory
body for Insurance industry (both Life and Non-Life Insurance Companies) under the
auspices of Government of India, headquartered at Hyderabad. IRDA was established by
an act enacted in Indian Parliament known as IRDA Act 1999 and was amended in 2002
to order to incorporate some emerging requirements as well as to overcome some
deficiencies in the entire process.
MISSION OF Insurance Regulatory and Development Authority (IRDA):
a) To protect the interests of the policyholders.
b) 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.

3. DUTIES, POWERS AND FUNCTIONS
OF IRDA
• Section 14 of IRDA Act, 1999 lays down the duties, powers and
functions of IRDA. Subject to the provisions of this Act and any other
law for the time being in force, the Authority shall have the duty to
regulate, promote and ensure orderly growth of the insurance
business and re-insurance business. Without prejudice to the
generality of the provisions contained in sub-section (1), the powers
and functions of the Authority shall include-
➢ To issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration; protection of the
interests of the policy holders in matters concerning assigning of
policy, nomination by policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other terms and
conditions of contracts of insurance; specifying requisite qualifications,
code of conduct and practical training for intermediary or insurance
intermediaries and agents;

4. Continued…
• Specifying the code of conduct for surveyors and loss assessors;
promoting
efficiency in the conduct of insurance business; promoting and
regulating professional organizations connected with the insurance
and re-insurance business; levying fees and other charges for carrying
out the purposes of this Act.
• Calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the insurers,
intermediaries, insurance intermediaries and other organizations
connected with the insurance business; control and regulation of the
rates, advantages, terms and conditions that may be offered by
insurers in respect of general insurance business not so controlled
and regulated by the Tariff Advisory Committee under section 64U of
the Insurance Act, 1938.

5. Continued…
• Specifying the form and manner in which books of account shall
be maintained and statement of accounts shall be rendered by
insurers and other insurance intermediaries; regulating
investment of funds by insurance companies; regulating
maintenance of margin of solvency; adjudication of disputes
between insurers and intermediaries or insurance
intermediaries; supervising the functioning of the Tariff Advisory
Committee.

6. Continued…
• Specifying the percentage of premium income of the insurer to
finance schemes for promoting and regulating professional
organizations referred to in clause (f); specifying the percentage
of life insurance business and general insurance business to be
undertaken by the insurer in the rural or social sector; and
exercising such other powers as may be prescribed.

7. COMPOSITION OF IRDA AUTHORITY:
• As per the section 4 of IRDA Act 1999, Insurance Regulatory
and Development Authority (IRDA, which was constituted by an
act of parliament) specify the composition of Authority the
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).

8. ESTABLISHMENT AND
INCORPORATION OF AUTHORITY:
• With effect from such date as the Central Government may, by
notification, appoint, there shall be established, for the purposes
of this Act, an Authority to be called "the Insurance Regulatory
and Development Authority".
• The Authority shall be a body corporate by the name aforesaid
having perpetual succession and a common seal with power,
subject to the provisions of this Act, to acquire, hold and
dispose of property, both movable and immovable, and to
contract and shall, by the said name, sue or be sued. The head
office of the Authority shall be at such place as the Central
Government may decide from time to time.
• The Authority may establish offices at other places in India.

9. Registration of i) Indian insurance company; or ii) a statutory body
established by an act of parliament to carry on insurance business
Procedure for registration
(1) An applicant desiring to carry on insurance business shall make an application to the
Authority for issuance of requisition for registration application form IRDAI/R1.
(2) The Authority may require the applicant, which makes an application under regulation
3 (1), to furnish further information or clarifications regarding the matters relevant to
the consideration of the application for issuance of requisition for registration
application.
(3) The Authority, by recording the reasons in writing, may reject the application for
issuance of requisition for registration application Form IRDAI/R1.
(4) An applicant aggrieved by the decision of the Authority under sub-regulation (3) may,
within a period of thirty days from the date of such communication, appeal to the
Securities Appellate Tribunal.
(5) An applicant, whose requisition for registration application has been accepted by the
Authority, shall make an application in Form IRDAI/R2 for grant of certificate of
registration.

10. Expectations from IRDA:
The law of India has following expectations from Insurance
Regulatory and Development Authority (IRDA) :
• To protect the interest of and secure fair treatment to
policyholders.
• To bring about speedy and orderly growth of the insurance
industry (including annuity and superannuation payments), for
the benefit of the common man, and to provide long term funds
for accelerating growth of the economy.
• To set, promote, monitor and enforce high standards of integrity,
financial soundness, fair dealing and competence of those it
regulates.

11. Continued…
• To ensure that insurance customers receive precise, clear and
correct information about products and services and make them
aware of their responsibilities and duties in this regard.
• To ensure speedy settlement of genuine claims, to prevent
insurance frauds and other malpractices and put in place
effective grievance redressal machinery.
• To promote fairness, transparency and orderly conduct in
financial markets dealing with insurance and build a reliable
management information system to enforce high standards of
financial soundness amongst market players.

12. Continued…
• To take action where such standards are inadequate or
ineffectively enforced.
• To bring about optimum amount of self-regulation in day to day
working of the industry consistent with the requirements of
prudential regulation.

13. References:
https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/Regulations/Consolidated/IRDA%20(Regis
tration%20of%20Indian%20Insurance%20Companies)%20Regulations2000.pdf
https://www.studocu.com/in/document/jamia-millia-islamia/fundaments-of-insurance/detailed-
notes-on-insurance-regulatory-and-development-authority-irda/19270396