Role of the Insurance Regulatory and Development Authority (IRDAI)
The Insurance Regulatory and Development Authority(IRDAI) was constituted to regulate and develop insurance business in India. As a key part of its role, it is responsible to protect the rights of policyholders. In order to create awareness about IRDAI, it's role, duties and responsibilities are stated here under:
- IRDAI provides a certificate of registration to a life insurance company.
- IRDAI is responsible for the renewal, modification, withdrawal, suspension or cancellation of this certificate of registration.
- IRDAI frames regulations on protection of policyholders' interests.
- It offers policyholders the right to voice their complaints against insurers or insurance companies.
- The IRDAI has set up the grievance redressal cell to take up the complaints of the policyholder.
- It specifies the requisite qualifications, code of conduct and practical training for intermediaries or insurance intermediaries and agents.
- It specifies the code of conduct for surveyors and loss assessors;
- It promotes efficiency in the conduct of insurance businesses;
- It promotes and regulates activities of professional organisations connected with life insurance;
- It levies fees and other charges to carry out the purposes of the IRDAI Act;
- It can call for information from, undertake the inspection of, conduct enquiries and investigations including the auditing of insurers, intermediaries, insurance intermediaries and other organisations connected with the business of life insurance;
- It specifies the form and manner in which books of account should be maintained and statements of accounts should be rendered by insurers and other insurance intermediaries;
- It regulates the investment of funds by insurance companies;
- It regulates the maintenance of margins of solvency;
- It adjudicates disputes between insurers and intermediaries or insurance intermediaries;
- It specifies the percentage of premium income of the insurer to finance schemes for the promotion and regulation of certain specified professional organisations;
- It specifies the percentage of life insurance business to be undertaken by an insurer in the rural or social sector; and
- It exercises any other powers as may be prescribed
To know more about the IRDAI, please visit http://www.IRDAI.gov.in.