RAJARAM SHINDE

COLLEGE OF MBA

AT POST – PEDHAMBE, TAL -CHIPLUN, Dist –Ratnagiri, 415603

(Affiliated to University of Mumbai, Recognized by AICTE)

Presentation Subject
FINANCIAL REGULATION
Presentation On
IRDAI
Submitted by

Mr.OMkar Chalke
Under the guidance of prof.Mandavkar sir

Student sign faculty sign

IRDAI
 Insurance Regulatory and Development Authority of
India (IRDAI)
Insurance Regulatory and Development Authority of India (IRDAI), is a statutory
body formed under an Act of Parliament, i.e., Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act, 1999) for overall supervision and
development of the Insurance sector in India.

The powers and functions of the Authority are laid down in the IRDA Act, 1999 and
Insurance Act, 1938. The Insurance Act, 1938 is the principal Act governing the
Insurance sector in India. It provides the powers to IRDAI to frame regulations
which lay down the regulatory framework for supervision of the entities operating
in the Insurance sector. Section 14 of the IRDA Act,1999 specifies the Duties,
Powers and Functions of the Authority

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999 -

 Issuing, renewing, modifying, withdrawing, suspending or cancelling

registrations
 Protecting policyholder interests
 Specifying qualifications, the code of conduct and training for intermediaries
and agents
 Specifying the code of conduct for surveyors and loss assessors
 Promoting efficiency in the conduct of insurance businesses
 Promoting and regulating professional organizations connected with the
insurance and re-insurance industry
 Levying fees and other charges
 Inspecting and investigating insurers, intermediaries and other relevant
organizations
 Regulating rates, advantages, terms and conditions which may be offered by
insurers not covered by the Tariff Advisory Committee under section 64U of the
Insurance Act, 1938 (4 of 1938)
 Specifying how books should be kept
 Regulating company investment of funds
 Regulating a margin of solvency
 Adjudicating disputes between insurers and intermediaries or insurance
intermediaries
 Supervising the Tariff Advisory Committee
 Specifying the percentage of premium income to finance schemes for promoting
and regulating professional organizations
 Specifying the percentage of life- and general insurance business undertaken in
the rural or social sector
 Specifying the form and the manner in which books of accounts shall be
maintained, and statement of accounts shall be rendered by insurers and other
insurer intermediaries.

Role and Responsibilities of IRDA

IRDA performs various important functions to regulate

and develop the insurance sector in India:

 Regulation and Supervision :

IRDA formulates and enforces regulations, rules, and
guidelines to govern the conduct of insurance
companies, intermediaries, and other stakeholders in
the industry. It ensures compliance with these
regulations and exercises supervision to maintain the
integrity and stability of the insurance market.

 Licensing of Insurance Companies :

 IRDA grants licenses to insurance companies to
operate in India. It assesses the financial soundness,
competence, and compliance of insurers before
granting them the necessary approvals to carry out
insurance activities.

 Protection of Policyholders' Interests :

IRDA safeguards the interests of policyholders by
establishing rules and standards for insurance
products and services. It ensures transparency,
fairness, and ethical practices in insurance
transactions and resolves policyholder grievances
through its grievance redressed mechanism.

 Policy Formulation :
IRDA formulates policies and guidelines to promote
the development and growth of the insurance sector. It
regularly reviews and updates these policies to adapt
to changing market dynamics and emerging trends.
 Promoting Market Competition :
IRDA fosters healthy competition among insurance
companies by preventing monopolistic practices and
ensuring a level playing field for all market
participants. It encourages innovation, product
diversification, and customer-centric approaches to
drive market efficiency and consumer choice.

 Development Initiatives :
IRDA undertakes initiatives to enhance public
awareness about insurance, promote insurance
penetration, and improve financial literacy among
individuals. It supports initiatives for capacity
building, skill development, and research in the
insurance sector.

 Solvency Regulation :
IRDA establishes solvency norms and monitors the
financial health of insurance companies to ensure
their ability to meet policyholder obligations and
maintain long-term sustainability.
 Intermediary Regulation :
IRDA regulates insurance intermediaries such
as insurance agents, brokers, and third-party
administrators. It sets qualification requirements, a
code of conduct, and standards of practice for
intermediaries to protect the interests of
policyholders.

 International Cooperation :
IRDA engages in bilateral and multilateral
cooperation with international insurance regulatory
bodies to share best practices, facilitate cross-border
collaborations, and stay updated with global trends in
insurance regulation.