The Insurance Regulatory and Development Authority (IRDA) was recommended by The Malhotra Committee in the year 1999. The purpose of The Malhotra Committee (headed by R.N Malhotra) was to recommend the Government the best course of action pertaining to the growth, regulation, and structure of the Indian Insurance Sector.
The committee was formed in 1993 and provided its recommendations in 1999.
Let us briefly list the most important recommendations of this committee:
The Malhotra Committee wanted the governance and regulation of the insurance sector to move away from the finance ministry to an independent governing body (which would later be the IRDA). This recommendation was made with the understanding that an industry specific institution would better regulate the industry due to its specialized nature.
The IRDA was formed in 1999 under the watchful eye of the Indian Parliament through the IRDAI Act, 1999.
The committee also recommended certain primary functions of The IRDA which we will touch upon below.
Formation of the IRDA along with the liberalization of the Indian Insurance Sector were two major inflection points that unleashed the explosive potential of the insurance sector in India.
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Frequently asked questions about IRDA , and The Malhotra Committee
The IRDA was formed in 1999.
Shri. R.N Malhotra (RBI Governor)
You can lodge a complaint with IRDA through the use of their online IGMS system.
Shri. Debasish Panda