IRDA, or the Insurance Regulatory and Development Authority of India, is the apex regulatory body that supervises and regulates the insurance sector in India. It was established through the IRDA Act of 1999 to protect policyholders' interests and ensure the insurance industry's growth. IRDA is composed of a chairman and five full-time members and four part-time members appointed by the Government of India. Its key functions include regulating insurance companies by issuing licenses, protecting policyholders' security, promoting transparency, and overseeing the appointment of qualified actuaries.

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Name: Mohit Joshi
Sub: Principles Of Management
IRDA
(Insurance Regulatory and
Development Authority)

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What is IRDA?
 IRDA or Insurance Regulatory and
Development Authority of India is the apex
body that supervises and regulates the
insurance sector in India.
 The primary purpose of IRDA is to safeguard
the interest of the policyholders and ensure
the growth of insurance in the country.
When it comes to regulating the insurance
industry, IRDA not only looks over the life
insurance, but also general insurance
companies operating within the country.
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INTRODUCTION

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Section 4 of IRDA Act 1999; specify
the composition of the Authority is
as follows; the ten members team
should consist of,
 A Chairman;
 Five whole time members;
 Four part time members,
(All appointed by Government of
India)
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COMPOSITION OF IRDA

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 The IRDA Act, 1999 was passed as per the
major recommendation of the Malhotra
committee report (1994) which
recommended establishment of an
independent regulatory authority for
insurance sector in India.
 Later, it was incorporated as a statutory
body in April, 2000
 The IRDA Act, 1999 also allows private
players to enter the insurance sector in
India besides a maximum foreign equity of
26 per cent in a private insurance company
having operations in India.
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HISTORY OF IRDA

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 Conduction of Insurance
Businesses across India in
an ethical manner.
 To protect the insurance
industry and make rules
and regulations.
 To promote, regulate and
ensure orderly growth of
the insurance industry.
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MISSION OF IRDA

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 Regulatory Function
 Security To Policyholders
 Transparency In Functioning
 Higher Interaction
 Appointment Of Actuary
 Promoting Confidence
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FUNCTIONS OF IRDA

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 REGULATORY FUNCTION:
IRDA performs regulatory functions
in providing licenses to transact
insurance business. It gives
guidelines in maintaining financial
and legal requirements for starting
insurance business. It also provides
licences to the intermediaries such
as agents and brokers and regulates
there working.
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FUNCTIONS OF IRDA

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 SECURITY TO POLICYHOLDERS:
IRDA ensures highest possible security
to the policyholders. It supervises the
day to day functioning of insurance
companies so that the interests of the
policyholders are well protected. It
conducts periodical evaluations to
ensure that insurance companies
maintain adequate assets. No genuine
claim of the policyholders can be
delayed or denied.
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FUNCTIONS OF IRDA

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 TRANSPARENCY IN FUNCTIONING:
IRDA wants to make insurance business
clearly understood by the people. For
the purpose sales literature is so
prepared that everyone understands the
functioning of insurance companies.
Insurance products are fairly priced and
clearly illustrated to enable people to
make up there mind. Transparency in
functioning adds to the procurement of
higher business and builds goodwill
among insured.
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FUNCTIONS OF IRDA

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 HIGHER INTERACTION:
One of the approaches of IRDA is to
develop higher interaction with
consumer forums. Such interactions
improve relation and help to fight
misunderstandings and rumours.
Further insurance companies can be
inspected from time to time.
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FUNCTIONS OF IRDA

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 APPOINTMENT OF ACTUARY:
An actuary is an expert in statistics who
calculates insurance risks and
premiums. Under IRDA, it is compulsory
for every insurance company to appoint
an actuary in order to ensure
professional treatment to the business.
Such as appointment requires approval
from IRDA. The person appointed as
actuary can work till 70 years of age.
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FUNCTIONS OF IRDA

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 PROMOTING CONFIDENCE:
IRDA outlines measures to promote
confidence among the people. It has
prescribed paid up capital of insurance
companies as follows:
a) Insurance companies desiring to transact
life or general insurance must maintain a
minimum of Rs.100 crore of paid up capital.
b) Insurance companies desiring to transact
reinsurance business must maintain a
minimum of Rs.200 crore of paid up capital.
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FUNCTIONS OF IRDA

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 Multi-distribution i.e increasing penetration
through new modes of distribution such as
the internet, direct and telemarketing and
NGOs.
 Product innovation i.e increased levels of
customizations through product innovation.
 Claims management i.e timely and efficient
management of claims to prevent delays
which can increase claim cost.
 Profitable growth i.e expanding product
range, developing innovation product and
expanding distribution channels.
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TRENDS IRDA SHOULD FOCUS MORE

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THE OFFICIAL WEBSITE OF IRDA

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Thank You