INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY

PRESENTED BY:B.SAI KIRAN(12NA1E0036)

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WHAT IS INSURANCE?? Insurance in law and economics is a

form of risk management primarily used to hedge against the risk of contingent loss.

Insurance is defined as the equitable transfer of the risk of a potential loss from one entity to another, in exchange to premium.

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INSURER? INSURED? An insurer, or insurance carrier, is a

company selling the insurance. The insured, or policyholder, is the

person or entity buying the insurance policy.

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INSURANCE EVOLUTION 1818-Oriental Life Insurance Company-1st

Insurance company. 1870-Bombay Mutual life Assurance

society-1st life insurance company. 1912-The Indian life assurance

Companies act enacted the 1st law to regulate the Life insurance Business

1928-The Indian life assurance Companies act enacted to enable the Government to collect statistical information about both Life and Non-Life insurance businesses.

IRDA ACT? The Act was passed in 1999.

"To Protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. "

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MISSION

a)To protect the interests of the policy holders

b)To promote ,regulate and ensure orderly growth of the insurance industry and four matters connected there with or incidental

there to

c)Conduction of insurance businesses across India in

an ethical manner

COMPOSITION OF AUTHORITY

As per the section 4 of IRDA Act 1999, IRDA specify the composition of authority as a ten member team consisting of,

A Chairperson. Not more than five whole – time

members. Not more than four part – time

members.

(All appointed by the Govt. Of India)

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IRDA FRAMEWORK

FUNCTIONS OF IRDAThe Authority shall have the duty to

regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

1. Registration (licensing) including renewal of registration of insurance companies.

2. Licensing of insurance intermediaries such as agents, surveyors and loss assessors, third party administrators, brokers, etc.

3. Official approval of agent’s training institutions.

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DUTIES & RESPONSIBILITIES

According to the Section 14 of IRDA Act of 1999 there are certain duties:

To regulate, promote and ensure orderly growth of the insurance business and re-insurance business.

To issue a certificate of registration and powers to renew, modify, withdraw, suspend or cancel the registration.

Protection of the interests of the policy holders.

To specify qualifications, code of conduct and practical training for intermediaries.

To specify the code of conduct for surveyors and loss assessors.

INSURANCE ADVISORY COMMITTEE The Insurance Advisory Committee shall

consist of not more than twenty-five members excluding ex-officio members to represent the interests of commerce, industry, transport, agriculture.

The Chairperson and the members of the Authority shall be the ex officio Chairperson and ex officio members of the Insurance Advisory Committee.

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IRDA’S NEW HEALTH INSURANCE REGULATIONS – A REVIEW Insurers have a freedom to specify max. renewal age. Insurer has to now give a min. 30 days grace period for

renewal. All health policies will now give policyholder a free-look

period of 15 days. Every proposal for health insurance product shall provide for

“nomination”. Though as per Section 39 of Insurance Act, “nomination” is optional – however, it is highly advisable.

Insurers may provide coverage for non-allopathic treatments provided they are taken at recognized hospitals.

Insurer has to settle claim within 30 days, cannot asked for document in one go.

Identification card within 30days. products with a term of 1 year of less, at least 50% of the

cost of proposal will be borne by Insurer

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