IRDAI FUNCTIONS

Insurance Regulatory and Development Authority of India (IRDAI) was

formed by the government of India by passing the IRDAIAct, 1999 in the
parliament.

IRDAI is the National agency of Government of India for the Indian Insurance
Industry.

IRDAI is created for the supervision and development of the insurance sector
in India.
The preamble of the IRDAI Act states the mission of IRDAI which is “ To
provide for the establishment of an authority to protect the interests of
policyholders’ interests, to regulate, promote and ensure orderly growth of the
Insurance Industry.
The Insurance Regulatory and Development Authority of India (IRDAI)
is an autonomous, statutory agency 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. The
agency's headquarters are in Hyderabad, Telangana, where it moved
from Delhi in 2001.

Insurance Regulatory and Development Authority (IRDA) has been

renamed as ‘Insurance Regulatory and Development Authority of
India’. The change in name came in to effect after the promulgationof
Insurance Laws (Amendment) Ordinance, 2014, by the President of
India on December 26, 2014.
 Composition of Authority(IRDAI)

Section 4 of the IRDAI Act 1999 specifies the authority's composition

IRDAI is a Ten(10)-member body including

1. AChairman/Chairperson,
2. Five (5) full-time 5R33Qm9zyr
3. Four (4) part-time members

These members are appointed by the Central Government from amongst persons of
ability, integrity and standing who have knowledge or experience in life Insurance, general
Insurance, actuarial science, finance, economics, law, accountancy, administration or any
other discipline which would, in the opinion of the Central Government, be useful to the
Authority.
MISSION STATEMENTOFTHEAUTHORITY
(Purpose of forming theIRDAI)
• To protect the interest of and secure fair treatment to
policyholders;
• To bring about speedy and orderly growth of the insurance
industry (including annuity and superannuation payments), for the
benefit of the common man, and to provide long term funds for
accelerating growth of the economy;
• To set, promote, monitor and enforce high standards of
integrity, financial soundness, fair dealing and competence
of those it regulates;
• To ensure speedy settlement of genuine claims, to prevent
insurance frauds and other malpractices and put in place
effective grievance redressal machinery;
• To promote fairness, transparency and orderly conduct in
financial markets dealing with insurance and build a reliable
management information system to enforce high standards of
financialsoundness amongst market players;
• To take action where such standards are inadequate or
ineffectively enforced;
• To bring about optimum amount of self-regulation in day-
to-day working of the industry consistent with the
requirements of prudential regulation.
• To ensure that insurance customers receive precise, clear and
correct information about products and services and to make
them aware of their responsibilities and duties in this regard.
Functions of IRDAI (Section 14)

The functions of the IRDAI are defined in Section 14 of the IRDAI Act,
1999, and include:
• Issuing a applicant certificate of registration, renewing,
modifying, withdrawing, suspending or cancelling
registrations
• Protecting policyholder interests in matters concerning
assigningof the policy, nomination by policy holders, insurable
interest, settlement of claim, surrender value of policy and other
terms and conditions of contract of insurance.
• Specifying requisite qualifications, code of conduct and
practical training for Insurance intermediaries and agents
• Specifying the code of conduct for surveyors and lossassessors
• Promoting efficiency in the conduct of Insurancebusiness;
• Promoting and regulating professional organisations
connected with the insurance and re-insurance business;
• Levying fees and other charges for carrying out the purposes
ofthis Act;
• Calling for Information, Inspection and investigations including
audits of the insurers, intermediaries and other relevant
organisations connected with the Insurancebusiness;
• 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 form and manner in which books of accounts shall be
maintainedand statements of accounts shall be rendered by
insurers and other insurance intermediaries.
• Regulating company investment of funds by Insurance Companies
• Regulating maintenance of margin of solvency
• Adjudicating disputes between insurers and intermediaries or
insurance intermediaries
• Supervising the functioning of the Tariff AdvisoryCommittee;
• Specifying the percentage of premium income of the
Insurers to finance schemes for promoting and regulating
professional organisations
• Specifying the percentage of life- and general-insurance
business undertaken in the rural or socialsector
• Specifying the form and the manner in which books ofaccounts
shall be maintained, and statement of accounts shall be
rendered by insurers and other insurer intermediaries.
• Exercising such other powers as may be prescribed.
ESI SCHEME
Employee’s State Insurance Act, 1948 (ESIAct)

• To provide for certain benefits to employees in cases of

Sickness, Maternity and Employment Injury etc.,
• Eligible for Health care primary and tertiary atmore than 1500 Clinics
and hospitals run by Employee State Insurance Corporation (ESIC)
directly or Indirectly.
• The Scheme is applicable to Industrial Employees as defined in
the Act.
• Under the scheme a fund is maintained consisting of
contribution from the employees, employers and the
Government.
• Employees Contribute 1.75 %- Basic Salary & Dearness
Allowance
• Employers Contribute 4.75 %- Basic Salary & Dearness
Allowance
• Wage Limit Rs21000 for Coverage w.e.f 1st January
2017 as on 31st March 2016 – 21 Million Subscribers
Overall 10 Crore Members.
This revision in wage limit has benefited additional 50Lakh
Members.
From ESICScheme fund the following expenses are met:

I. Sickness benefit, maternity benefit, disablement

benefit, dependents’ benefits (Death), medical
treatment.
II. Establishment and maintenance of hospitals, dispensaries,
III. etc. for the benefits of the insured person and theirfamilies
Administration of the scheme
EPF
Introduction
EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions
Act, 1952 .
The scheme is managed under the aegis of Employees' Provident Fund Organisation (EPFO).
It covers every establishment in which 20 or more persons are employed and certain
organisations are covered, subject to certain conditions and exemptions even if they employ less
than 20 persons each.
 Contribution by employer and employee
The contribution paid by the employer is 12% of basic wages plus dearness allowance plus retaining allowance.
 An equal contribution is payable by the employee also.
In the case of establishments which employ less than 20 employees or meet certain other conditions, as per the EPFO rules, the
contribution rate for both employee and the employer is limited to 10 percent.
Employer’s share moves into the EPF kitty. Out of employer’s contribution, 8.33% will be diverted to Employees’ Pension Scheme, but it is
calculated on Rs 15,000. So, for every employee with basic pay equal to Rs 15,000 or more, the diversion is Rs 1,250 each month into EPS.
If the basic pay is less than Rs 15000 then 8.33% of that full amount will go into EPS. The balance will be retained in the EPF scheme. On
retirement, the employee will get his full share plus the balance of Employer’s share retained to his credit in EPF account.
3.67% in EPF
The employee can voluntarily pay higher contribution above the statutory rate of 12 percent of basic pay. This is called contribution
towards Voluntary Provident Fund (VPF)

INTEREST RATE 8.65% 2018-2019

Few Highlights
UNIVERSAL ACCESS NUMBER
TAX SAVINGS
5 years before withdrawl the Tax will be applicable
After 5 Years Exemption from Tax
Transfer of EPF
MARRIAGE, EMERGENCY, HEALTH , HOUSING 5/7/10 Years
Upto 50% Withdrawl
Resignation More Than 2 Months - 100% Withdrawal
EDLI Scheme
Employee Deposit Linked Insurance
Provided that the assurance benefit shall not be less than ₹ 250000
Provided further that the assurance benefit shall not exceed ₹ 600000
Thank You
Jaswanth Singh G
Insurance Domain Consultant (InsureTech)and Faculty for
Insurance and Pension Studies
Resident Editor Insurance Times
Innovator @ indiaassurance.in and allinsuranceclaims.in
+91 8310765785 +91 9449049107
services@indiaassurance.in
jasshu7@gmail.com