The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was established by an Act of Parliament known as the IRDA Act, 1999 and was amended in 2002 to incorporate some emerging requirements.
Expectations from IRDA
The law of India has following expectations from IRDA
To protect the interest of and secure fair treatment to policyholders.
To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard.
To take action where such standards are inadequate or ineffectively enforced.
To bring about optimum amount of self-regulation in day to day working of the industry consistent with the requirements of prudential regulation.
To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates.
Duties, Powers and Functions of IRDA
Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
Powers of IRDA
Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration
specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents
promoting efficiency in the conduct of insurance business
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
regulating investment of funds by insurance companies
regulating maintenance of margin of solvency
adjudication of disputes between insurers and intermediaries or insurance intermediaries