IRDAI (Insurance Regulatory and Development Authority of India)

Overview:

What is IRDAI?

IRDAI stands for the Insurance Regulatory and Development Authority of India. IRDAI is a statutory body established under the Insurance Regulatory and Development Authority Act, 1999. The IRDAI works under the Ministry of Finance, Government of India.

Establishment of IRDAI:

The IRDAI was established in 1999 after the Insurance Regulatory and Development Authority Act, 1999 was passed by the parliament of India.

Objectives of IRDAI:

The objectives of the IRDAI are to promote competition to enhance customer satisfaction with increased consumer choice and lower premiums while ensuring the financial security of the insurance market. The other important objectives of the IRDAI are-

To protect the interest of and secure fair treatment to policyholders.

To bring speedy and orderly growth of the insurance industry for the benefit of the common man and to provide long-term funds for accelerating the economy's growth.

To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates.

To ensure speedy settlement of genuine claims, to prevent insurance fraud and other malpractices, and to put in place effective grievance redressal machinery.

To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players.

To take action where such standards are inadequate or ineffectively enforced.

To bring about the optimum amount of self-regulation in the day-to-day working of the industry consistent with the requirements of prudential regulation.

Headquarters of IRDAI:

The headquarters of IRDAI is situated in Hyderabad, Telangana.

Organization Structure:

The IRDAI is a ten-member body consisting of a chairman and five full-time and four part-time members appointed by the government of India.