Functions of Insurance Regulatory and Development Authority
You trust your insurance companies for the safe-keeping of your future, the dearest of your people, and the most valuable assets of yours. It surely might have crossed your mind that who makes these insurance companies trustworthy? Who ensures that they keep up with your belief and expectations? Here’s something to answer these questions.
It is the IRDA or the Insurance regulatory and development authority which works towards protecting the interests of the policyholders. It is the one that ensures that you don’t lose your hopes for a safe future.
It sets rules, regulations, and guidelines for the working of insurance companies, agencies, and intermediaries. It controls the insurance industry in India. The IRDA also regulates the rates and other charges related to insurance.
The sole objective of the IRDA is to ensure that the provision of the Insurance Act is enforced appropriately followed in a way that benefits the policyholders. There are various functions it performs to fulfil its objective and purpose of establishment.
Let’s take a deeper look into the functions of Insurance regulatory and development authority.
Functions of Insurance regulatory and development authority (IRDA)
- The first and foremost function of the IRDA is to protect the interests and secure fair treatment of the policyholders.
- Ensuring the growth of the industry is another most important function of the IRDA. While executing this function the authority has to keep in mind the benefits the growth will offer to the common man.
- Granting, Renewing, Modifying, Cancelling, or Withdrawing the IRDA certificates for the insurance companies.
- Laying down the code of conduct, the qualifications needed and the training to be given to the insurance agents.
- It also lays down the ways of working and the code of conduct for loss assessors and surveyors.
- Promoting fairness, transparency, and orderly conduct of the market players. It also helps create a reliable and high-standard management system to build a reputation of the insurance industry.
- Specifying the fees and charges for carrying out the functions of the authority.
- It undertakes inspections, audits, investigation, and calls for information of the insurance companies, intermediaries, and other companies related to the insurance industry.
- Another one of its very important functions is to take strict and immediate action against the companies that do not follow the guidelines. It also ensures to take stern measures against companies that are inadequate in enforcing the standards and measures as laid down by the authority.
- IRDA also decides and specifies the limits of rates that an insurance company can offer. It also looks after the advantages that the insurance companies provide.
- To look after the effective and speedy settlement of genuine claims. This helps in avoiding frauds and malpractices and in addressing the grievances of the policyholders.
- IRDA also makes sure that the insurance companies register themselves under it. This helps them to keep a check on the companies’ ways of working and standards.
Along with all of these, one of the important functions of Insurance regulatory and development authority is to guarantee the policyholder that the best of their interests are being taken care of.