Q.Explain the powers and functions of IRDA.

The Insurance Regulatory and Development Authority (IRDA/IRDAI), set up under the IRDA Act 1999, is the apex regulator of insurance in India. Its powers and functions cover registration of insurers, protection of policyholders, licensing of agents, fixing professional standards, regulating funds and premiums, and developing the insurance sector.

Meaning

The IRDA (Insurance Regulatory and Development Authority of India) is a statutory body created to regulate, promote and ensure the orderly growth of the insurance and re-insurance business, while protecting the interests of policyholders.

Powers and Functions of IRDA

1. Registration and regulation - Grants, renews, modifies, suspends or cancels the registration of insurance companies.
2. Protection of policyholders' interests - Oversees policy terms, claim settlement, surrender value and nomination to safeguard policyholders.
3. Licensing of intermediaries - Prescribes qualifications, training and a code of conduct for agents, brokers and surveyors.
4. Setting professional standards - Promotes and regulates professional bodies connected with insurance.
5. Regulation of premium rates and terms - Controls rates, advantages and terms offered by insurers.
6. Regulation of investment of funds - Lays down how insurers must invest their funds for safety and solvency. …