Objectives of IRDA
- To promote the interest and rights of policy holders.
- To promote and ensure the growth of Insurance Industry.
- To ensure speedy settlement of genuine claims and to prevent frauds and malpractices
- To bring transparency and orderly conduct of in financial markets dealing with insurance.
Functions And Duties of IRDA
Section 14 of IRDA Act,1999 lays down the duties and functions of IRDA:
It issues the registration certificates to insurance companies and regulates them.
- It protects the interest of policy holders.
- It provides license to insurance intermediaries such as agents and brokers after specifying the required qualifications and set norms/code of conduct for them.
- It promotes and regulates the professional organisations related with insurance business to promote efficiency in insurance sector.
- It regulates and supervise the premium rates and terms of insurance covers.
- It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports.
- It regulates the investment of policyholder’s funds by insurance companies.
- It also ensures the maintenance of solvency margin (company’s ability to pay out claims) by insurance companies.