The Insurance Regulatory Authority is the autonomous body, which regulates and develops the insurance industry in India. It was first constituted by a Parliament of India act, which is called the Insurance Regulatory and Development Authority Act, 1999 and passed by the Government of India.
The Important Features
It was developed for two reasons, firstly to safeguard the policy of the insurance holders that would help them to lead a good social life. Secondly, it’s essential for the up gradation of the entire insurance sectors adopted by the existing insurance companies towards their shareholders. The authority has been given the right to register the new insurance companies in India.
The Insurance Regulatory Authority first prepared the list of the new insurance companies with the existing insurance companies and the overseas insurance companies. The insurance companies need to approach the Insurance Regulatory Authority for the purpose of renewal of the insurance registration that’s necessary to carry out the smooth execution of the entire process. The authority is able to cancel the renewal of the registration of an insurance company under particular circumstances. They can even modify the registration procedure of the company ensuring better options. The Insurance Regulatory Authority provides the safeguarding procedure to the policyholders of the various insurance companies in various ways –
- Nomination by the Policyholders of the company
- The settlement of insurance claim of the holders
- Practical training for Insurance agents and other intermediaries
- Insurable Interest
- The accurate value for the policyholders
- code of conduct of Insurance Intermediaries
- Providing assistance in gaining correct information about policies
- creation of a management information system
- Provides promotion of Self-regulation within the insurance sector
The Insurance Regulatory and Development Authority is designed to protect the interests of the policyholders. It can regulate, promote and ensure the suitable growth of the insurance industry. The institution is based at Hyderabad in India with all its optimistic features developed for the sake of the valuable users. The organization has made the Insurance Law Reforms Committee, which includes prominent personalities like Dr. K.C. Misra, Mr. T. Viswanathan, N. Govardhan, and Mr. Liaquat Khan to protect the interests of the policyholders. Also, it regulates, promotes and ensure orderly growth of the insurance industry and for matters connected therewith.
The authority has its own laws that are intended to protect the interests of the policyholders. Regulatory law is the body of statutory law which is included the insurance companies to understand the specifications of the users showing them the ultimate way of reaching the destination. It is subjected to governmental regulation to protect the public’s interests. It helps in regulating the insurance companies in the public interest. It helps to preserve the financial solvency of insurance companies and regulates the other aspects of the insurance industry. Therefore, the Insurance Regulatory Authority works for the public interest so that the money of the holders can be a safeguard and it can be protected by the insurance companies.
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