Q.What is the IRDA ?

Insurance is a contract in which an insurer, for a premium, agrees to compensate an insured for a specified financial loss arising from an uncertain event; its underlying nature is risk pooling and risk transfer — a small, affordable premium contributed by many people exposed to a similar risk builds a common fund from which the few who actually suffer a loss in a given period are compensated. For this arrangement to work fairly and remain financially sound, it rests on a set of core principles: utmost good faith (both parties, especially the insured, must honestly disclose every material fact relevant to the risk); insurable interest (the insured must have a genuine financial stake in the subject matter insured); indemnity (compensation restores the insured to their exact pre-loss position, no more and no less, though life insurance is an exception since a life cannot be given a precise value); contribution (multiple insurers on the same risk s …