IRDAI Full Form
What is the full form of IRDA?
The full form of IRDA is Insurance Regulatory and Development Authority of India. It is an entity which is owned by the Government of India. Its headquarter has been located in Hyderabad since 2001 and it is used to control India's insurance industry. At first it was in Delhi and later moved to Hyderabad. The Indian Government created IRDA to lead the passage of Insurance Regulatory and Development Authority Act, 1999.
- What is the full form of IRDA?
- History of IRDA
- Functions of IRDA
- Organizational structure of IRDA
History of IRDA
In India the life insurance policy business began in the year 1818 after the establishment of Oriental Life Insurance Company in Calcutta and the company failed in 1834.
In 1829, Madras Equitable began life-insurance business under the Madras Presidency. After this many companies were started in the Bombay presidency Bombay Mutual in 1871 and Empire of India in 1897,. after the British Insurance Act enacted in 1870,
The Government of India in 1914, started publishing insurance company returns. The Indian Life Assurance Companies Act, 1912 was the first act regulating life insurance.
In 1928, the Indian Insurance Companies Act was enacted to enable the government to gather information about life and non-life insurance business conducted in India by Indian and foreign insurers.
In 1950, the Insurance Amendment Act abolished principal agencies and there were allegations of unfair trade practices at the same time and the Government of India decided to nationalize the Insurance industry.
In 1999, the IRDAI was constituted in order to regulate and develope insurace industry.It was incorporated in April,2000.
Functions of IRDA
The functions of IRDA as follows:
IRDA is accountable for policy making and acts as supervision for all the Indian insurance companies.
It ensures the privacy of policyholders about claim resolution, policy surrender value, etc.
It lays down the credentials, code of ethics and skills required for insurance intermediaries and agents.
IRDA mentions the code of conduct for surveyors and loss assessors.
IRDA promotes the efficiency in the conduct of insurance businesses.
It also deals with issuing, renewing, modifying, withdrawing or canceling registrations.
It also promotes and regulates professional organizations connected with the insurance and reinsurance industry.
It regulates the investment funds by insurance companies.
It also supervises the functioning of the Tariff Advisory Committee.
Organizational structure of IRDA
The section 4 of IRDA Act 1999 mainly specifies the composition of Authority. The Authority consists of 10 members team with
A Chairman
Five full-time members
Four Part-time members
IRDA head office is located at Hyderabad where all major activities like ensuring the financial stability of insurers and monitoring the market conduct of various regulated entities is carried out in the head office. The New Delhi is one of the regional offices focused on spreading consumer awareness and handling of insurance grievances. This is also responsible for licensing of surveyors. The Mumbai regional office also functions in the same manner but in the Western region.
Frequently Asked Questions (FAQs)
IRDA Act is the foundation of institutions under the IRDA Act 1999. It is used to protect the interests of policy holders, and also regulates and promotes the orderly growth of insurance industries located in india.
Some purpose of the IRDA are listed below:
To ensure the speedy claim settlement, insurance frauds and other malpractices.
To improve the standards of insurance markets.
To take action when the established regulatory standards are enforced inefficiently.
The main applications of IRDA are:
IRDA develops rules for data transmission via infrared waves of light.
Instead of using cable, IRDA uses infrared light for the transfer of information from one device to another.
It customizes the devices with IRDA slots.
The former IAS officer Subhash Chandra Khuntia was appointed as the new chairman of Insurance Regulatory and Development Authority of India.
IRDA has various powers which includes
IRDA approves product terms and conditions offered by various insurers.
It regulates investment of funds by various companies
It specify financial reporting norms of various
It ensures insurance coverage is provided in rural areas and also to the vulnerable sections of the society.