What is IRDA? What are the Functions and duties of IRDA?

IRDA Insurance Regulatory and Development Authority.

Insurance Regulatory and Development Authority (IRDA) constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India. It is regulate the Indian Insurance Industry to protect the interests of the policyholders and work for the orderly growth of the industry. It is set up as autonomous body under the IRDA Act, 1999. To protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

Activities of IRDA

– Frames regulations for insurance industry in terms of Section 114A of the Insurance Act 1938
– From the year 2000 has registered new insurance companies in accordance with regulations
– Monitors insurance sector activities for healthy development of the industry and protection of policyholders’ interests

IRDAI Duties and Functions:

– Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

– Protecting policyholders’ interests
– Ensuring the maintenance of solvency margin by insurance companies
– Regulating investment of policyholders’ funds by insurance companies
– Regulating and overseeing premium rates and terms of non-life insurance covers
– Ensuring insurance coverage in rural areas and of vulnerable sections of society
– Specifying financial reporting norms of insurance companies
– Licensing and establishing norms for insurance intermediaries
– Promoting professional organizations in insurance
– Registering and regulating insurance companies

source: policyholder official web

Founded: 1999

Sector: Insurance

Headquarters: Hyderabad, Telangana

Type: Statutory Corporation