Insurance Regulatory and Development Authority (IRDA) Act, 1999, IRDAI, its functions, role, structure

Your car is hit at a signal near Vashi, and the other driver says his insurer will pay. Who checks that the insurer is honest, that it has enough money to keep its word, and that the agent who sold the policy was trained? In India one statutory body does all three: the Insurance Regulatory and Development Authority of India. The IRDA Act 1999 created it, and its sections tell you what it may do, who runs it, and exactly how far the Government can go in controlling it.

In two minutes

The IRDA Act 1999 sets up IRDAI as a body corporate with the duty to regulate, promote and ensure orderly growth of insurance and re-insurance business, and protects policyholders first, while keeping the Central Government in charge of policy direction and supersession.

The rest of this chapter

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