Insurance Regulatory Development Authority of India (IRDAI)
The insurance companies in India are supervised by IRDAI - Insurance Regulatory Development Authority of India. IRDAI regulates the Indian Insurance Industry to protect the interests of the policyholders and work for the orderly growth of the industry.
What is IRDAI?
The Insurance Regulatory Development Authority of India (IRDAI) is a regulatory body created with the aim of protecting the policyholder’s interest. It also regulates and sees to the development of the insurance industry.
Click here to know more about IRDAI.
History and Purpose of IRDAI?
The statutory body of IRDAI was established in the year 1999, deriving its powers and functions from the IRDAI Act, 1999 and Insurance Act, 1938. IRDAI works as an autonomous body responsible for managing and regulating the insurance and reinsurance industry in India along with registering and/or licensing insurance, reinsurance companies and intermediaries according to the regulations. Some purposes of IRDAI are:
- To protect the interest of the policyholders
- To regulate and promote the orderly growth of the insurance and reinsurance industry
- To ensure speedy claim settlement and to prevent Insurance frauds and other malpractices
- To better the standards of insurance markets
- To take action when established regulatory standards are ineffectively enforced
Powers and Functions of IRDAI in the Insurance Industry
To protect the interests of policyholders, the IRDAI was granted significant responsibilities. Here are some of them.
- Efficiently conducting insurance business and protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of the policy and other terms and conditions of contracts of insurance
- Approving product terms and conditions offered by various insurers
- Regulating investment of funds by insurance companies and maintaining a margin of solvency
- Specifying financial reporting norms of insurance companies
- Ensuring insurance coverage is provided in the rural areas and also to the vulnerable sections of society
What is Insurance Ombudsman?
Insurance Ombudsman is a scheme initiated by the Government of India to ensure a cost-effective, efficient and impartial settlement of your grievances. There are 17 Ombudsman offices in India, each covering different regions (jurisdictions). You can file your complaint without paying anything at an office that covers your jurisdiction.
Once the grievance is lodged, the office of the Ombudsman arranges a hearing. This hearing is attended by the claimant and the representatives of the insurer. Usually, the Ombudsman declares the award within three months of the hearing. However, you can approach an Ombudsman only if the value of the claim is less than or equal to ₹ 30 lakh.
- Click here to download the list of Ombudsman’s offices and their respective addresses
- Click here to view the addresses of the Ombudsman’s offices on the IRDAI website