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.

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