HOW INSURANCE IS GOVERNED IN INDIA

By- UMAR ZAID KHAN

It is a risk transfer mechanism that ensures full or
partial financial compensation for the loss or
damage caused by events beyond the control of
insured party.
 The agency which helps in entering into
agreement is known as INSURER.
 The person who gets his property/life insured is
known as INSURED.
 The agreement or contract is known as POLICY.
 The consideration in return of which insurer
undertakes to make good for loss is known as
PREMIUM.
 The Insurance Regulatory and Development
Authority of India (IRDAI) is an autonomous,
statutory body tasked with regulating and
promoting the insurance and re-insurance
industries in India.

 It was constituted by the Insurance

Regulatory and Development Authority Act
1999, an Act of Parliament passed by the
Government of India.
 Protecting the interest of the policyholders.
 Establishing guidelines for the operation of
insurers and brokers.
 Specifying the code of conduct, qualification
and training for insurance intermediaries and
agents.
 Promoting efficiency in the conduct of
insurance business.
 Regulating the investment of funds by
insurance companies.
 According to latest IRDA figures, India has
about 4.20 crore of insured people.
 Registered insurers in India are LIC of India
(LIC) and 23 other life insurers.
 Life insurance industry recorded a premium
income of 4,18,476.62 crore during 2016-17.
 In the year 2016-17, the life insurance
companies had settled 8.60 lakh claims on
individual policies, with a total payout of
13,850.62 crore.