What is Insurance Regulatory and Development Authority (IRDA)

Since insurance contracts consist of insurance undertakings or promises made by insurance companies to reimburse the insured person in the event of an accident or failure, but these promises are not tangible and insurance companies deal with the enormous size of contracts;So in an industry this gives rise to disputes. To resolve such disputes, each nation's government appoints a regulator to look after the activities & attempts to resolve the issues. Accordingly, the Government of India set up an agency called the Insurance Regulatory and Development Authority (IRDA) to oversee and resolve the issues that arise in the insurance sector and even look after the development of this sector. Thus, this article will shed light on the characteristics, role, impact, duties, powers, policies, etc. of the Insurance Regulatory and Development Authority (IRDA).

Insurance Regulatory and Development Authority (IRDA) 

Parliament passed the IRDA Act in December 1999, receiving the approval of the president in January 2000. The authority's main objective is to "protect the interest of insurance policy holders in regulating, promoting and ensuring the orderly growth of the insurance industry and in matters related to it or incidental to it." Under this Act, the Insurance Controller under Insurance Act 1398 has been replaced by the newly established Insurance Regulatory and Development Authority (IRDA).

Features of Authority:

• The Authority Comprises of the following members listed below;-The Authority consists of chairman, full-time members and part-time members, and together they act as a group of members and work together as insurance controllers not individually.
• Even in death or resignation cases, the Authority will continue to work.
• The Authority is an ongoing succession corporate body and a common seal.
• The Authority has the power to sue or in its own name can be sued.

Powers & Functions to:-

1. To shield the interest of the insurance holders associated with give up price of insurance, settlement of coverage claims, insurable interest, nomination by using policy holders, other phrases & conditions of insurance settlement.
2. Promoting skill ability inside the conduct of insurance business;
3. Promoting and regulating expert groups connected with the insurance and re-insurance commercial enterprise;
4. Calling for records from, venture inspection of, conducting inquiries  together with audit of the insurers, intermediaries, coverage intermediaries and other organizations connected with the Insurance commercial enterprise;
5. Regulating investment of price range by insurance agencies;
6. Regulating maintenance of margin of solvency i.e. having enough funds to pay insurance claim amount;
7. To settle the disputes among insurers and intermediaries or insurance intermediaries