Q.The Insurance Regulatory and Development Authority (IRDA/IRDAI) in India was established under the:

The 1938 Act is the law governing insurance business, but the regulator itself was created by a separate, later statute.

The Insurance Regulatory and Development Authority was established as an autonomous statutory body under the IRDA Act, 1999, to regulate and develop the insurance industry in India (following a later amendment its formal name is IRDAI). This is a separate statute from the Act that governs the conduct of insurance business.

Option-by-option analysis:

• (a) Incorrect — the Insurance Act, 1938 is the principal LAW governing insurance business, but it did not create IRDA. …