Insurance Regulatory and Development Authority (IRDA)

IRDA stands for Insurance Regulatory and Development Authority. It is an autonomous body of the Government Of India tasked with the regulation and management of the insurance sector in India. IRDA came into force after the government of India passed the IRDA Act in the Indian Parliament in 1999.

In this article, we will discuss some of the important aspects of IRDA including:-

• What is IRDA?
• IRDA Act
• Functions of IRDA
• IRDA Regulations
• IRDA Headquarters
• IRDA Structure
• Chairman of IRDA
• IRDA Complaints
• IRDA Pan Lookup

What is IRDA?

The formation of an insurance regulatory authority was recommended by the Malhotra Committee in the year 1999. The government acted on this recommendation with the formation of The Insurance Regulatory And Development Authority (IRDA). IRDA is tasked with the regulation of insurance and reinsurance activities, along with the promotion of fair practices and competition among insurance companies. The end objective of IRDA is to ensure what is best for the consumer prevails.

IRDA Act

The INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA ACT came into effect in 1999, with the purpose of amending earlier acts, namely the Life Insurance Corporation Act, 1956, General Insurance Business Act, 1972, and the Insurance Act, 1938. The IRDA Act provides a framework, guidelines, rules, and instructions to insurance companies in India. It is an enforceable act passed by the Parliament Of India.

Functions of IRDA

The following core functions of the IRDA are specified under the IRDA Act, 1999.

• Protection of insurance policy-holders, including claims settlements disputes
• Maintain a registry of insurance companies in India
• Laying down a specific code of conduct for insurance companies and agents
• Presenting general guidelines to insurance companies and their agents
• Encouraging professionalism among insurance and reinsurance companies
• Regulation of insurance premiums
• Regulation and over-watch of funds collected by insurance companies
• Ensuring the maintenance of the solvency ratio of an insurance company. Thus ensuring the financial strength of the company
• Handling of disputes between parties
• Providing a framework of efficient and sustainable growth of the insurance sector in India
• Correspond with Insurance Ombudsman in matters of dispute among stakeholders

IRDA Regulations

IRDA provides regulations for various branches of the insurance sector in India. They include providing regulatory instructions relating to the general insurance sector, health insurance sector, reinsurance sector. Further regulations relating to brokers, web aggregators, investment funds, expense management, corporate policy, solvency margin, among others.

IRDA Headquarters

The current IRDA headquarters are in Hyderabad, Telangana. Its head office building was established in 2001.

IRDA Corporate Structure

IRDA corporate structure comprises 10 members. A Chairman, 5 permanent members, and 4 temporary members. All members can be appointed for a maximum duration of 5 years. All appointments are made by the Government Of India.

Chairman of IRDA

The current Chairman of IRDA is Dr. Subhash C. Khuntia. Dr.Khuntia assumed the position of IRDA Chairman in May 2018. He has a distinguished service record in the civil services of India, with distinguished positions held in The Ministry of Human Resources, Ministry Of Finance, and Ministry Of Petroleum And Gas

Dr. Khuntia has a Ph.D. in Economics along with holding master’s degrees in physics and computer science.

IRDA Complaints 

In case you wish to raise a complaint with IRDA, you will have to contact the Grievance Redressal Cell of IRDA. Mention your complaint on the complaints registration form and send it to the Grievance Redressal Cell.

Alternatively, you can also lodge an online complaint by making use of IRDA’s Integrated Grievance Management System (IGMS)

IRDA Pan Lookup

It is imperative that you know that your agent is registered with the IRDA. If you wish to cross-verify the details of your agent, you may use the IRDA pan lookup tool for the same. Just enter the PAN Card details or Aadhar Card details of your agent in the IRDA pan lookup tool and you should be furnished with the following details:-

• Name of agent/company
• Date of joining
• Company
• Date of birth
• Insurer company
• Agency code
• Termination date (If terminated)

If the details are as per your satisfaction, you may choose to continue doing business with the agent.