Insurance Regulatory and Development Authority

WHY IN NEWS?

The Insurance Regulatory and Development Authority of India (IRDAI) has imposed penalty on Maruti Insurance Broking (MIBL) and Hero Insurance Broking India (HIBIL) for not complying with the Motor Insurance Service Provider (MISP) guidelines.

ABOUR IRDAI

• The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India.
• It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India.
• The agency's headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
• IRDAI is a 10-member body including the chairman, five full-time and four part-time members appointed by the government of India.

FUNCTIONS

• The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999; some of the important ones include:
  • Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
  • Protecting policyholder interests
  • Specifying qualifications, the code of conduct and training for intermediaries and agents
  • Promoting efficiency in the conduct of insurance businesses
  • Promoting and regulating professional organizations connected with the insurance and re-insurance industry
  • Adjudicating disputes between insurers and intermediaries or insurance intermediaries

Prelims Question

Q. Which of the following statements regarding IRDAI is/are correct?
1. It is non-statutory body formed by a resolution of the government of India
2. Its function includes adjudicating disputes between insurers and intermediaries
Select the correct answer using the code given below:
a. 1 only
b. 2 only
c. Both 1 and 2
d. Neither 1 nor 2

Answer to the Prelims Question