Saturday, 31 December 2016

Insurance Regulatory and Development Authority(IRDA)

Insurance Regulatory and Development Authority (IRDA) is an autonomous apex statutory body which regulates

and develops the insurance industry in India. It was constituted by a Parliament of India act called Insurance

Regulatory and Development Authority Act, 1999 and duly passed by the Government of India.

The agency operates its headquarters at Hyderabad, Andhra Pradesh where it shifted from Delhi in 2001. The

Insurance regulatory and Development Authority (IRDA), batted for a hike in the foreign direct investment (FDI)

limit to 49 per cent in the sector from the present 26 per cent.

The IRDA Act, 1999 was passed as per the major recommendation of the Malhotra Committee report (1994) which

recommended establishment of an independent regulatory authority for insurance sector in India. Later, It was

incorporated as a statutory body in April, 2000. The IRDA Act, 1999 also allows private players to enter the

insurance sector in India besides a maximum foreign equity of 26 per cent in a private insurance company having

operations in India. It serves as an Authority to protect the interests of holders of insurance policies, to regulate,

promote and ensure orderly growth of the insurance industry and for matters connected therewith. IRDA role is to

protect rights of policy holders & they provides registration certification to life insurance companies & responsible

for renewal, modification, cancellation & suspension of this registered certificate.

Former LIC chief T S Vijayan today took over as the chairman of the Insurance Regulatory and Development

Authority (IRDA). Mr Vijayan succeeds J Hari Narayan, who completed his five-year term yesterday. IRDA

chairperson's tenure is for five years.

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