INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

ABOUT IRDAI:

• The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.
• It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India.
• The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
• IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.

FUNCTIONS:

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999; some of the important ones include:

• Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
• Protecting policyholder interests
• Specifying qualifications, the code of conduct and training for intermediaries and agents
• Promoting efficiency in the conduct of insurance businesses
• Promoting and regulating professional organizations connected with the insurance and re-insurance industry
• Adjudicating disputes between insurers and intermediaries or insurance intermediaries.

PRELIMS QUESTION:

Q. Consider the following statements regarding Insurance Regulatory and Development Authority of India (IRDAI):

1. It is a statutory body
2. It has a mandate to adjudicate disputes between Insurers and Intermediaries.

Which of the statements given above is/are correct:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer to Prelims question