1. •The IRDA was setup in 1996. but it was formally
constituted as a regulator of insurance industry in
April 2000.
•The regulatory was initially known as the Insurance
Regulory Authority.
•But was subsequently renamed as Insurance
Regulatory and Development Authority as it was
provided that it had a broder role to perform in the
Indian insurance market.

2.  It has not only to frame and issue statutory regulatory
stipulations, guidelines and clarification but it has also
to perform a developmental and promotional role.
 The developmental and promotional role of the
regulator include facilitating the growth of the market
by attracting a large number of players integrating of
the insurance market with the domestic financial
services market, and synchronizing the Indian
insurance market with that of global insurance market

3.  Objectives of IRDA:
 1. policy holder protection.
 2. Healthy growth of the insurance market.
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4.  The IRDA has a chairman and four full time and four
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part time members.
the IRDA has constituted the insurance advisory
committee has brought out seventeen regulations.
In addition, representatives of consumers, industry,
insurance agents, women’s organization, and other
interest groups are a part of this committee.
It has also formed a consumer advisory committee and
surveyor and loss assessors committee.
It has a panel of eligible charted accountants to carry
out investigation, inspection and so on.

5.  Mission statement of the IRDA:
 To protect the interest Of and secure fair treatment to
policy holders.
 To bring about speedy and orderly growth of the
insurance industry for the benefit of the common
man, and to provide long-term funds for accelerating
growth of the economy.
 To set promote, monitor and enforce high standards of
integrity, financial soundness, fair dealing, and
competence of those it regulates.

6.  To ensure that insurance customer receive precise,
clear, and correct information about products and
services and make them aware of their responsibilities
and duties in this regard.
 To ensure speedy settlement of genuine claims to
prevent insurance frauds, and other malpractices and
put n place effective grievance redressal machinery.

7.  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.
 To take action where such standards are inadequate or
in effectively enforced.
 To bring about optimum amount of self-regulation I
day-to-day working of industry consistent with the
requirements of prudential(acting in a cautious and
sensible way) regulations.

8. Duties powers and functions of the
IRDA
 Section 14 of the IRDA act 1999, lays down the duties,
powers, and functions of the IRDA.
 Subject to the provision of the 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 reinsurance business.

9.  The power and functions of the authority shall
include the following:
 Issuing to the applicant a certificate of registration,
renew, modify, withdraw, suspend or cancel such
registration.
 protection of the interest of the policy holders in
matters concerning assigning of policy, nomination by
policy holders, insurable interest, settlement of
insurance claim, surrender value of policy and other
terms and conditions of contracts of insurance.

10.  Specifying requisite qualifications, code of conduct
and practical training for intermediary or insurance
intermediaries and agents.
 Specifying the code of conduct for surveyors and loss
assessors.
 Promoting efficiency in the conduct of insurance
business.
 Promoting and regulating professional organizations
connected with the insurance and reinsurance
business.

11.  Control and regulation of the rate, advantages, terms
and conditions that may be offered by insurers in
respect of general 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.
 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.

12.  Regulating investment of funds by insurance
companies.
 Regulating maintenance of margin of solvency.
 Adjudication of disputes between insurers and
intermediaries or insurance intermediaries.
Supervising the functioning of the tariff advisory
committee.
 Specifying the percentage of premium income of the
insurer to finance schemes for promoting and
regulating professional organization referred in clause
(f)

13.  Specifying the percentage of life insurance business
and general insurance business to be undertaken by
the insurer in the rural or social sector, and exercising
such order power as may be prescribed.

14. Operation of the IRDA
 The IRDA has developed its internal parameters to
assess the promoters’ credential.
 The parameters long-term commitment to stay in the
market, their ability to bring in new techniques in
insurance underwriting and administration are some
of the parameters, which are assessed in the first
phase.
 Subsequent to this preliminary assessment, the IRDA
conducts as in depth assessment of the business plans
submitted by the promoter.

15.  The IRDA is the sole authority for awarding licenses, there
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is no restriction in the number of license .
There is no restriction in the number of licenses it can
issue, but licenses for life and non-life business are to be
issued separately. Licenses are issued only on a national
basic.
the new players should commence business within 15 to 18
months of getting he license.
The new applicant has to pay a registration fee of 50,000.
At the time of renewal of registration every year, a fee of
0.20 percent of one percent of the gross premium or
50,000 whichever is higher, is levied on the insurers
carrying out insurance business in India.

16.  The IRDA ha prescribed a file and use procedure,
according to which copies of standard terms,
conditions, and literature.
 In case of tariff products, the tariff advisory committee
is required to file product and pricing details with the
IRDA like any other insurance company.
 All insurance intermediaries, such as agents and
corporate agents, have to undergo compulsory training
prior to their obtaining a license.
 The IRDA also specified the minimum educational
qualifications for these intermediaries.

17.  It conducts examination and then issues licenses to
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these agents.
It believes that well trained and informed
intermediaries can service the consumers better.
The IRDA insured or renewed, 1,18,154 agents license
by the end of march 2000.
The licensing of insurance agents regulations have
specified the qualifications for an insurance agent:
Hundred hours relicensing training, followed by an
examination.

18.  In addition, for new agents 25 hours training to keep
knowledge updated has also been prescribed at the
time of renewal of license.
 The insurance association and life insurances and
general insurance councils have been o vivid and they
are responsible for setting the norms for market
conduct, ethical behavior of the insurers, and breach
of regulations.
 Continuous training has been stipulated to enhance
the efficiency of the intermediaries.

19.  New players have set up call centers which are
functioning on a 24/7 basis.
 The IRDA has recognized the actuarial society of
India and insurance institute of India as nodal
organizations responsible for insurance education.
 IRDA has drafted separate bills of the society of India
and the institute of surveyors and loss assessors in
order to grant their statutory status.

20.  The IRDA has also entered into an MOU with the
Indian Institute of Management, Bangalore, to further
its objective of insurance research and education. It
has set up a risk management resource center in
Bangalore.
 The IRDA has come out with the Insurance
advertisement and disclosure regulations to ensure
that the insurance companies adhere to fair trade
practices and transparent disclosure norms while
addressing the policy holders or the prospects.