IRDAI is a regulatory body of the Indian insurance industry (III) to protect the interests of policyholders, and work for the gradual increase of industry.
IRDAI Timeline –
- 1991 – Government of India initiated economic reform programs and financial sector reforms.
- 1993 – To recommend reforms in the insurance sector, Mr. R.N. Committee was constituted under the chairmanship of Malhotra (Retd. Governor, Reserve Bank of India).
- 1994: Malhotra Committee recommends certain reforms after studying insurance sector and after hearing the parties.
Some improvements which are recommended are as follows
- Private sector companies should be allowed to introduce insurance companies
- Foreign promoters should also be allowed
- The government should hand over its regulatory powers to an independent regulatory body, which is accountable to Parliament.
When Indian Insurance Regulatory and Development Authority(IRDA) Established
- The Indian Insurance Regulatory and Development Authority (IRDAI) is an autonomous body established under the IRDA Act, 1999
The goal of IRDA: To protect the interest of policyholders, ensure the regulation, enforcement and traumatic increase of the insurance industry and the related issues related to it or its related
Activities of IRDA
- Regulation of insurance industry under section 114A of Insurance Act, 1938.
- Since 2000, new insurers register to be in compliance with the regulations.
- Supervises the activities of the insurance sector for the healthy development of the industry and for the protection of the interests of the policyholders.