Introduction
- Insurance Regulatory and Development Authority (IRDA) of India was founded in 2000 as an autonomous statutory body.
- Incorporation of IRDA was done following the privatization of the insurance sector.
- Headquartered in Hyderabad, this authority is tasked to regulate and promote the insurance and reinsurance sector in India.
- IRDA acts as a regulator to resolve problems and supervise the issues that arise in the insurance sector. Further, it also fulfills its roles, duties, and powers to develop the sector.
- The IRDA must control, promote, and safeguard the growth of the Indian insurance industry and reinsurance business.
- For all further information, refer website: www.irdai.gov.in.
Structure
Organization Structure:
- IRDA consists of a Chairman, whole time members, and part-time members.
- Mr. Subhash Chandra Khuntia is the current Chairman of IRDA.
- All the members and the Chairman shall act as a group of members and work jointly as the Controller of Insurance rather than working individually.
- This shall mean that the authority continues to work consistently irrespective of resignation or death of a member.
- The authority holds a common seal that is bestowed with the power to enter into a contract by fixing a stamp on the document.
- The authority holds the right to sue any person or organization and can also be sued.
Members
| Designation | Name | Brief Profile |
|---|---|---|
| Chairman | Mr. Subhash Chandra Khuntia |
|
| Member (Finance & Investment) | Mr. Pravin Kutumbe |
|
| Member (Distribution) | Mr. Sujay Banarji |
|
| Member (Life) | Mr. Nilesh Sathe |
|
| Member (Actuary) | Ms. Pournima Gupta |
|
Functions
- Protection of interest of policyholders and secure them through fair treatment.
- Provision of benefits to the common man by bringing in speedy and orderly growth in the industry.
- Provision of long term funds for accelerating economic growth.
- Establishment of high standards of integrity is done by IRDA such that these are enforced to bring in financial soundness, competencies among various players, and fair dealing.
- Ensure quick settlement of claims that are genuine through effective grievance redressal mechanisms.
- IRDA undertakes steps for prevention of insurance frauds and other malpractices.
- Take actions if the standards enforced are found to be inadequate and ineffective.
- Efforts are made by IRDA for the promotion of fairness, orderly conduct, and transparency in the Indian financial markets that deal with insurance.
- IRDA works to build a reliable management information system for the enforcement of high standards of financial soundness among market players.
- Maintain optimum amount of self-regulation in day to day working such that the industry works consistently with the requirements of the prudential regulation.
Products
| Segment | Examples of Insurance Companies |
|---|---|
| Life Product | TATA AIA Life Insurance Co. Ltd., Shriram Life Insurance Co. Ltd., DHFL Pramerica Life Insurance Co. Ltd., Exide Life Insurance Co. Ltd., Max Life Insurance Co. Ltd., Aditya Birla Life Insurance Co. Ltd.. |
| General Insurance | Acko General Insurance Limited, Baja Allianz General Insurance Co. Ltd., Bharti AXA General Insurance Co. Ltd., Cholamandalam General Insurance Co. Ltd., DHFL General Insurance Co. Ltd. |
| Health Insurance | Aditya Birla Health Ins co., Apollo Munich Health Insurance Co Ltd., Bharti AXA General Insurance Co. Ltd., Cigna TTK Health Insurance Company. |
Impact
Impact of IRDA:
IA
International Affairs:
- IRDA also has extended support to the less developed or developing countries. The support is in the form of providing technical inputs based on the requirements of the same.
- International assistance is provided with an objective to improve strategies and enhance knowledge of various aspects of insurance worldwide.