Duties, Powers and Functions of Insurance Regulatory and Development Authority (IRDA) | Insurance Law

Introduction -

       In the year 1999 Insurance Regulatory and Development Authority Act (IRDA) was passed by the Parliament. The Insurance Regulatory and Development Authority Act, 1999 provides for the establishment of an authority to protect the interest of holder of insurance policies, to regulate promote and ensure orderly growth of the insurance industry and for matters concerned therewith or incidental thereto.

Duties, Powers and Functions of Insurance Regulatory and Development Authority -

According to Section 14 of the said Act, Duties Powers and Functions of Authority are as follows - 


(1), the powers and functions of the Authority shall include, -

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;

(b) protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of the policy and other terms and conditions of contracts of insurance;

(c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;

(d) specifying the code of conduct for surveyors and loss assessors

(e) promoting efficiency in the conduct of insurance business;

(f) promoting and regulating professional organizations connected with the insurance and reinsurance business;

(g) levying fees and other charges for carrying out the purposes of this Act;


(h) calling for information from, undertaking inspection of, conducting inquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;

(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

(j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k) regulating investment of funds by insurance companies

(l) regulating maintenance of margin of solvency;

(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries;

(n) supervising the functioning of the Tariff Advisory Committee;

(o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);

(p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and

(q) exercising such other powers as may be prescribed.


See also...

Marine Insurance: Meaning, Definition and Types of Marine Insurance | Insurance Law