2) State
b) Write a brief note on Insurance Regulatory and Development Authority (IRDA).
Answers
Answer:
Insurance Regulatory and Development Authority (IRDA) – Economics Study Material & Notes
Role and Functions of IRDA – Economics Study Material and Notes
First of all, let us take note of the fact that, Insurance is listed as a Union subject in the Seventh Schedule of the Constitution of India. Therefore, only Union Government has the authority to formulate laws on insurance sector and a State Government cannot.
The Insurance Regulatory and Development Authority (IRDA) is a Statutory, autonomous and apex body to regulate the insurance sector in India.
It was created upon the recommendations by the Malhotra Committee report of 1994. The report recommended that a independent authority to regulate the insurance industry in India should be established.
By the IRDA Act, 1999 this authority was setup. In 2000 it received the staus of a Statutory body by the Parliament.
Therefore, IRDA was setup in 2000 as an autonomous body with its headquarters at New Delhi.
In 2001, the headquarters of IRDA were shifted to Hyderabad, Telangana.
New Development: Since July 2014 the FDI limit in the insurance sector has been raised to 49% by the government. Earlier it was 26 percent.
The members and the Chairman of IRDA are appointed by the Government of India.
Insurance Regulatory and Development Authority (IRDA)
Mission of Insurance Regulatory and Development Authority (IRDA)
The IRDA has a mandate to fulfill the following :
To protect the interests of policyholders and ensure fair treatment to them.
To facilitate speedy and orderly growth of the insurance industry sector in Indian economy, for the benefit of common man, and to give long- term funds which will accelerate growth of our economy.
To ensure that the customers of insurance receive clear and correct information about the products as well as the services.
Organisational setup of IRDA
The Insurance Regulatory and Development Authority (IRDA) is a ten member team, appointed by the Government of India, consisting of the following:
One Chairman
Five whole-time members
Four part-time members
Functions of Insurance Regulatory and Development Authority
The Insurance Regulatory and Development Authority (IRDA) is a national apex regulatory agency of the Government of India. It performs the following functions with respect to the insurance sector