Insurance regulatory and development authority of india (IRDA)

Insurance regulatory and development authority of india (IRDA)

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  INSURANCE REGULATORY AND DEVELOPMENTAUTHORITY OF INDIA (IRDA)
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  INTRODUCTION the meaning ofinsurance and its importance and how it plays a very important role in economic development of the country. By now you must be well versed that in insurance business, there is a contract between individuals or group or businessmen and insurance companies. The duration of these contracts varies from one year to thirty years or more and volume of such contracts are also very large.
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  OBJECTIVES  we willstudy various Acts which are directly related to insurance business and some acts which indirectly deal with the insurance business  we have referred about two Acts LIC Act 1956 and GIBN Act 1972 but we will not explain these acts as they have lost their importance due to changed scenario in respect of the Insurance sector in the country.
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  OBJECTIVES  Insurance Regulatory& Development Authority Act 1999.  Insurance Act 1938  Consumer Protection Act 1986  Insurance Ombudsman  Marine Insurance Act 1963.  Carriage of Goods by sea Act 1925.  Bill of Lading Act 1855.  Motor Vehicle Act 1988.
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  HISTORY  In Indiaalso, Government started exercising control on Insurance business by passing two acts in the year 1912 namely • Provident Insurance Societies Act V of 1912 • Indian Life Insurance Companies Act VI of 1912  These acts were later comprehensively amended and a new Act namely Insurance Act 1938 came into existence for controlling • Investment of funds • Management of the insurance companies
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  HISTORY  The Officeof Controller was established to implement this act. Again, this Act was amended in 1950 as per the need of the hour. But in view of growing malpractices in Life Insurance business and also due to the illiteracy level being high and lack of will for spread of Life Insurance business, it was nationalized by Government of India.  LIC Act was passed in June; 1956, and this Act came into force from 1st Sept.1956.  In early 90’s, with the world market forces playing with full strength; growing literacy level; better regulatory systems and need for fast growth in this sector
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  INSURANCE REGULATORY DEVELPMENT AUTHORITYACT (IRDA) 1999  This Act was passed by Parliament in Dec.1999 & it received presidential assent in Jan.2000. The aim of the Authority is “to protect the interest of holders of Insurance policies to regulate, promote and ensure orderly growth of Insurance industry & for matters connected therewith or incidental thereto  Definitions • “Appointed Day” means the date on which the Authority is established. • “Authority” means the Insurance Regulatory and Development Authority.
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  FEATURES OF AUTHORITY Having perpetual succession which means any member may resign or die but the Authority will work.  A common seal with power to enter into a contract by affixing a stamp on the documents.  Sue or be sued means the Authority can file a case against any person or organization and vice versa.
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  COMPOSITION OF AUTHORITY The Authority shall consist of nine persons as per details given below:  Chairperson.  Not more than 5 whole time members.  Not more than 4 part time members.  These persons shall be appointed by the Central Govt. from amongst persons of ability, integrity & standing who have knowledge or experience in life Insurance, general Insurance, actuarial science
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  MEETING OF AUTHORITY The meeting of the Authority will be held at the time and place as decided by the Chairperson as per regulation made under this act. If the Chairperson is unable to attend the meeting then the members will choose the Chairperson from amongst the present members.
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  OFFICERS & EMPLOYEESOF AUTHORITY  The Authority may appoint officers and employees as it considers necessary for the efficient discharge of its functions. The terms & conditions of such officers shall be governed as per the regulations made under this Act.
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  TRANSFER OF ASSETS,LIABILITIES ETC  As stated above that initially the Authority was formed under the name “Insurance Regulatory Authority (IRA)” and later on the name was changed to “Insurance Regulatory & Development Authority.”(IRDA) Therefore the assets and liabilities of IRA will be transferred to IRDA on the date of establishment of the Authority.
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  DUTIES, POWERS &FUNCTIONS OF AUTHORITY  Duties • The Authority shall have the duty to regulate, promote and ensure orderly growth of the Insurance business and reinsurance business subject to the provisions of any other provisions of the act.  Powers & Functions to • Promoting efficiency in the conduct of insurance business; • Promoting and regulating professional organisations connected with the insurance and re- insurance business
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  DUTIES, POWERS &FUNCTIONS OF AUTHORITY • Levying fees and other charges on insurance companies, Agents, Insurance Brokers, Surveyors and Third party Administrator • To settle the disputes between insurers and intermediaries or insurance intermediaries • Supervising the functioning of the Tariff Advisory Committee • Regulating investment of funds by insurance companies • Exercising such other powers as may be prescribed.
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  THANK YOU