Role of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shallhave the duty to regulate, promote and ensure orderly growth of the insurance business and reinsurance business.(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers andfunctions of the Authority shall include, -(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel suchregistration;(b) protection of the interests of the policy holders in matters concerning assigning of policy, nominationby policy holders, insurable interest, settlement of insurance claim, surrender value of policy and otherterms and conditions of contracts of insurance;(c) Specifying requisite qualifications, code of conduct and practical training for intermediary orinsurance intermediaries and agents;(d) Specifying the code of conduct for surveyors and loss assessors;(e) Promoting efficiency in the conduct of insurance business;(f) Promoting and regulating professional organisations connected with the insurance and re-insurancebusiness;(g) Levying fees and other charges for carrying out the purposes of this Act;(h) calling for information from, undertaking inspection of, conducting enquiries and investigationsincluding audit of the insurers, intermediaries, insurance intermediaries and other organisationsconnected with the insurance business;(i) control and regulation of the rates, advantages, terms and conditions that may be offered by insurersin respect of

general insurance business not so controlled and regulated by the Tariff AdvisoryCommittee under section 64U of the Insurance Act, 1938 (4 of 1938);(j) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries;(k) Regulating investment of funds by insurance companies;(l) Regulating maintenance of margin of solvency;(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries; (n) Supervising the functioning of the Tariff Advisory Committee;(o) Specifying the percentage of premium income of the insurer to finance schemes for promoting andregulating professional organizations referred to in clause (f);(p) Specifying the percentage of life insurance business and general insurance business to be undertakenby the insurer in the rural or social sector; and(q) Exercising such other powers as may be prescribed
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ROLE OF IRDA (PSII-CTMAS)

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1. To (protect) the interest of and secure fair treatment to policyholders.2. To bring about (speedy) and orderly growth of the insurance industry (includi ng annuity andsuperannuation payments), for the benefit of the common man, and to provide long term funds foraccelerating growth of the economy.3. To set, promote, monitor and enforce high standards of (integrity), financial soundness, fair dealingand competence of those it regulates.4. To ensure that insurance customers receive precise, clear and correct (inform ation) about productsand

services and make them aware of their responsibilities and duties in this regard.5. To ensure speedy settlement of genuine (claims), to prevent insurance frauds and other malpracticesand put in place effective grievance redressal machinery.6. To promote fairness, (transparency) and orderly conduct in financial markets dealing with insuranceand build a reliable management information system to enf orce high standards of financial soundnessamongst market players.7. To take (action) where such standards are inadequate or ineffectively enforce d.8. To bring about optimum amount of (self-regulation)in day to day working of th e industry consistentwith the requirements of prudential regulation.
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Functions of IRDA
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Section 14 of IRDA Act, 1999 laysdown the duties, powers and functions of IRDA(1) Subject to the provisions of this Act and any other law for the time being i n force, the Authority shallhave the duty to regulate, promote and ensure order ly growth of the insurance business and reinsurance business.(2) Without prejudice to the generality of the provisions contained in sub-secti on (1), the powers andfunctions of the Authority shall include,(a) issue to the applicant a certificate of registration, renew, modify, withdra w, suspend or cancel suchregistration;(b) protection of the interests of the policy holders in matters concerning assi gning of policy,nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policyand other terms and conditions of co ntracts of insurance;