B.V.

PATEL INSTITUTE OF MANAGEMENT

UKA TARSADIYA UNIVERSITY

INTRODUCTION TO BANKING AND

INSURANCE

SUBJECT SPECIFIC ASSIGNMENTS -2

TOPIC: Insurance Regulatory and Development

Authority of India (IRDAI)

SUBMIT TO: Dr.Vijay Gondaliya

SUBMISION DATE: 8/7/2019

SUBMITTED BY: DHRUVAL KANERIA

ENROLLMENT NO: 201703100310138
Insurance Regulatory and Development Authority of India (IRDAI)

What is IRDAI ?

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. The IRDA Act of
1999 allowed the entry of private companies in the insurance sector. All companies
have to approach the IRDAI for registration certificates. And they are responsible for
the renewal, modification or cancellation of these certificates.

IRDAI is a 10-member body including the chairman, five full-time and four
part-time members appointed by the government of India.

 One Chairman (For 5 Years & Maximum Age - 60 years )

 Five whole-time Members (For 5 Years and Maximum Age- 62 years)
 Four part-time Members (Not more than 5 years)

Authority:
Subhash C. Khuntia
Full-Time Members:
P. J. Joseph
Nilesh Sathe
Pournima Gupte
Praveen Kutumbe
Sujay Banarji.

Objectives of IRDA

1. To promote the interest and rights of policy holders.

2. To promote and ensure the growth of Insurance Industry.
3. To ensure speedy settlement of genuine claims and to prevent frauds and
malpractices
4. To bring transparency and orderly conduct of in financial markets dealing with
insurance

Functions Of IRDAI
1. Registering and regulating insurance companies
2. Protecting policyholders’ interests
3. Licensing and establishing norms for insurance intermediaries
4. Promoting professional organisations in insurance
5. Regulating and overseeing premium rates and terms of non-life insurance covers
6. Specifying financial reporting norms of insurance companies
7. Regulating investment of policyholders’ funds by insurance companies
8. Ensuring the maintenance of solvency margin by insurance companies
9. Ensuring insurance coverage in rural areas and of vulnerable sections of society

Purpose of IRDAI
I. To protect the interest of and secure fair treatment to policyholders
II. To bring about speedy and orderly growth of the insurance industry
III. To promote fairness, transparency and orderly conduct in financial markets
dealing with insurance and build a reliable management information system to
enforce high standards of financial soundness amongst market players
IV. To bring about optimum amount of self-regulation in day-to-day working of the
industry consistent with the requirements of prudential regulation
V. To take action where such standards are inadequate or ineffectively enforced
How IRDAI Works:
To protect the interests of the policyholders, to regulate, promote and ensure orderly
growth of the insurance industry and for matters connected therewith or incidental
thereto.