Insurance Regulatory & Development Authority is the controlling and regulatory apex body in the country for insurance
sector Its chairman and members are appointed by Government of India IRDAs HQ is located at Hyderabad
a) To protect the interests of the policyholders
b) To promote, regulate and ensure orderly growth of the insurance industry
c) Conduction of insurance businesses across India in an ethical manner
To promote orderly growth of insurance industry in the country, including registration of insurance companies Ensure continued financial soundness and solvency Regulate insurance and reinsurance companies Eliminate dishonest and unhealthy competition Insurance business opens up to private sector thus ending the monopoly of LIC
The Authority is a ten member team consisting of
(a) a Chairman (b) five whole-time members (c) four part-time members All appointed by the Government
Life insurance company
1. LIC of India
General insurance companies
[Link] insurance company ltd
[Link] India assurance company ltd [Link] insurance company ltd [Link] India insurance company ltd
Stage of Liberalization, Privatization & Globalization
(Competition between public sector & private sector)
Protection of the consumer Promotion of the industry Competitive neutrality Transparency Cost effectiveness Accountability Flexibility
In 1993, govt. formed a committee under the chairmanship of RN Malhotra to find out a way to reform the insurance sector The objective was to complement the reforms initiated in the financial sector It recommended that private sector players be permitted to enter the insurance industry Foreign companies should be allowed to enter by joint venture with Indian partners Following the recommendations, in 1999, IRDA was constituted as an autonomous to regulate & develop the insurance industry
Life Insurance - Insurance that pays out a sum of money either on the death of the insured person or after a set period
General Insurance - Insuring anything other than human life is called general insurance Reinsurance - It is insurance that is purchased by an insurance company from another insurance company (reinsurer) as a means of risk management
LIFE: The Oriental Insurance Co. Ltd National Insurance Co. Ltd United India Insurance Co Ltd
GENERAL: IFFCO Tokio General Insurance Co Ltd National Insurance Co. Ltd United India Insurance Co Ltd REINSURANCE: General Insurance Corporation of India
IRDA: Latest news and developments
Online application: IRDA has introduced an online application that enables the user to compare coverage, exclusions etc. under non life insurance products currently being sold by different insurers in the market Servicing of Life Insurance Orphan Policies: To Promote persistency of insurance policies, the Authority has issued guidelines on servicing of life insurance policies Web enabled facility: IRDA has introduced a web enabled facility for the general public to provide them access to data relating to insurance status of motor vehicles involved in accident
IRDA AWARNESS CAMPAIGN Bima Bemisaal
Bima Bemisaal is the brand name for IRDA's insurance awareness campaign. It is a consumer education initiative and has the tagline "Promoting Insurance. Protecting Insured It educates policyholders about their rights and obligations and informs them about the complaints resolution methods available to them
Jago Grahak Jago
IRDA has participated in the JAGO GRAHAK JAGO programme of Ministry of Consumer Affairs, Food and Public Distribution, Government of India, which aims to educate consumers. IRDA conducts a series of Annual Seminars on Policyholder Protection. The seminar consisted of three sessions: 1. Understanding Insurance-A Consumer Concern 2. Preventing Mis-selling in Life Insurance 3. Tying and Bundling Insurance with other goods and services
Defying its on norms The insurance regulator prescribed a 10% limit on equity holding for all life insurance companies But , LIC acts independently
Rules for all insurance companies are different
The Insurance Act did not allow companies to divest stake before completing 10 years of operations
Reliance Life sold a 26% stake to Nippon Life in a clear cut case of violation
Insurance Companies Uniformity of rates Across all sectors
Service Providers Differential Rates
Health Insurance Council
Stakeholders as members
It is a licensed corporate agent of Bajaj Allianz General Insurance Company Limited It sells products directly to retail consumers through the internet and through call centers No restriction on the amount of capital and proportion of FDI if they operate through this route Since Berkshire Hathaway cannot operate in India as a full-fledged foreign entity, it has entered the Indian market as a corporate agent
Clearer role definition of IRDA Selective application of rules should be stopped Rein in LIC Cap on the foreign investment in the sector should be increased to 49%
