The Role of IRDAI in Insurance Industry

The Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act, 1999) for overall supervision and development of the Insurance sector in India. The Authority acts as the regulator of the insurance industry in India and oversees the functioning of the Life Insurance and General Insurance companies operating in the country. The main objective of the IRDA is to protect the interests of the policyholder and regulate the insurance industry for orderly growth.

As per the law, the following are the Key functions of IRDAI:

• The authority to register, renew, update, suspend, withdraw, or cancel the registration of an insurance company.

• Reviewing, authorising, or rejecting insurance products.

• Working in the interest of a policyholder as well as the insurance company for fair practices at all stages of providing insurance to a policyholder.

• Ensuring the regulation and development of businesses allied to the insurance industry.

• The Tariff Advisory Committee is supposed to be supervised by the IRDAI.

• Looking into the regulation of investment of funds by an insurance company.

• Addressing and solving the disputes between various entities related to insurance.

• Conducting audits of insurance companies.

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