What is the full form of IRDA?
Insurance Regulatory and Development Authority is the full form of IRDA. It was constituted under the Insurance Regulatory and Development Authority Act, 1999 by the government of India to protect the interest of policyholders and work for the growth of the insurance industry.
The composition of Authority is specified as per Section 4 of IRDA Act, 1999 Insurance Regulatory and Development Authority of India.
IRDA is a ten-member team consisting of:
- A Chairman
- Five whole-time members
- Four part-time members
All of them are appointed by the Government of India. Subhash C Khuntia is the current chairman of IRDA.
Functions and duties of IRDA
As per Section 14 of the IRDA Act, 1999, functions and duties of IRDA as under:
- Register and regulate insurance companies
- Protect policyholders’ interests
- Issue license and establish norms for insurance intermediaries
- Promote professional organizations in insurance
- Regulate and supervise premium rates and terms of non-life insurance covers
- Specify financial reporting norms of insurance companies
- Regulate investment of funds of policyholders by insurance companies
- Regulate a margin of solvency
- Ensure insurance coverage of vulnerable sections of society and in rural areas
- Supervise the Tariff Advisory Committee
- Specify how books should be kept
- Adjudicate disputes between insurers and intermediaries or insurance intermediaries
Other entities regulated by IRDA
IRDA also regulates the following entities other than insurance companies:
- Insurance brokers
- Individuals agents
- Corporate agents
- Third party administrators
- Referral providers
- Web aggregators
- Insurance repositories
- Insurance marketing firms
- Surveyors & loss assessors
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