Establishment of insurance regulatory and Development Authority of India -
For reforms in the Insurance sector in order to make it more competitive and efficient, a committee was set up by the government of India in the year 1993 under the chairmanship of R.N. Malhotra (former governor of Reserve Bank of India).
The committee submitted its report in the year 1994. After accepting the Recommendations of the Malhotra Committee Report, the Government of India established an interim Insurance Regulatory Authority. After a short while in the year 1919 Insurance Regulatory and Development Authority Act (IRDA) was passed by the parliament of India.
The insurance regulatory and Development Authority of India Act 1999 provides for an establishment of an authority to protect the interest of the holder of insurance policies to regulate, promote and ensure your orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
Duties and functions of insurance regulatory and Development Authority of India (IRDA) -
Under section 14 duties and function of IRDA Shall include the following -
Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business.
Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, -
(a) issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration;
(b) protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance;
(c) specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents;
(d) specifying the code of conduct for surveyors and loss assessors
(e) promoting efficiency in the conduct of insurance business;
(f) promoting and regulating professional organizations connected with the insurance and reinsurance business;
(g) levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting inquiries and investigations including the audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries
(k) regulating the investment of funds by insurance companies
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance intermediaries;
(n) supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f);
(p) specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed.
Types and Evolution of insurance in India
Prohibition of trading under the Banking Regulation Act 1949
Distinction/Difference between shareholders and debenture holders
General rules relating to Benefits under the Employees State Insurance Act, 1948