POOJA GUPTA
IRDA
The Government of India realized the necessities of setting-
up Insurance Regulatory and Development Authority
(IRDA) in 1999. The IRDA was set-up to provide for the
establishment of an Authority, for protecting the interests
of holders of insurance policies, to regulate, promote and
insurer orderly growth of the insurance industry and for
matters connected therewith or incidental thereto.
Insurance Regulatory and
Development Authority of India
(IRDAI), is a statutory body formed
under an Act of Parliament, i.e.,
Insurance Regulatory and
Development Authority Act, 1999
(IRDA Act, 1999) for overall
supervision and development of the
Insurance sector in India.
Central government will establish IRDA by
notification.
It is a body corporate.
Common seal with power.
Perpetual succession.
Place of the head office shall be decided by the
central government.
Mr. Debasish Panda (Chairperson)
Mr. Thomas. M. Devasia; Member (Non-Life)
Mr. B.C Patnaik; Member (Life)
Mr. P K Arora; Member (Actuary)
Mrs. S N Rajeswari; Member (Distribution)
Mr. Rajay Kumar Sinha; Member (Finance &
Investments)
This Act may be called the Insurance Regulatory
and Development Authority Act, 1999.
It extends to the whole of India.
It shall come into force on such date as the
Central Government may, by notification in the
Official Gazatte.
A chairperson;
Not more than five whole-time members; and
Not more than four part-time members.
The Chairperson and every other whole-time
member shall hold office for a term of five years
from the date on which he enters upon his office.
A Part-time member shall hold office for a term
not exceeding five years.
IRDA:
Is, or at any time has been, adjudged as an
insolvent; or
Has become physically or mentally incapable of
acting as a member; or
Has been convicted of any offence
Has acquired such financial or other interest
The Authority shall meet at such times and places
and shall observe such rules and procedures in
regard to transaction of business at its meetings
as may be determined by the regulations.
The Chairperson, or if for any reason he is
unable to attend the meeting of the Authority, any
other member choosen by the members present
from amongst themselves at the meeting shall
present at the meeting.
The Authority shall have the duty to regulate, promote and
ensure orderly growth of the insurance business and re-
insurance business.
Issue to the applicant a certificate of registration, renew,
modify, withdraw, suspend or cancel such registration;
Protection of the interests of the policyholders.
Specifying requisite qualifications, code of conduct and
practical training for intermediary or insurance intermediaries
and agents;
Promoting efficiency in the conduct of insurance business;
Promoting and regulating professional organizations
connected with the insurance and re-insurance business;
Control and regulation of the rates, advantages, terms and
conditions.
Regulating investment of funds by insurance companies;
Regulating maintenance of margin of solvency;
Control and regulation of rates.
Specifying the form and manner in which books of account shall
be maintained.
Supervising the function of tariff advisory committee.
Specifying the function of premium percentage of the insurer.
Exercising other power as may prescribed.
The Central Government may, by notification, make rules
for carrying out the provisions of this Act.
Rules may provide for all or any of following matters,
namely:
The salary and allowances payable to
The allowances to be paid to the part-time members
under sub-sections (2) of section 7;
The form of annual statement of accounts to be
maintained by the Authority under sub-section (1) of
section 17;
The Authority may, in consultation with the Insurance Advisory Committee, by
notification, make regulations consistent with this Act and the rules make
thereunder to carry out the purposes of this Act.
Regulations may provide for all or any of the following matters, namely:
The time and palaces of meetings of the Authority and the procedure to be
followed at such meetings including the quorum necessary for the transaction
of business under sub-section.
The transactions of business at its meetings under sub-section (4) of section
10;
The terms and other conditions of services of officers and other employees of
the Authority under sub-section (2) of section 12;
The powers and functions which may be delegated to committees of the
members under sub-section (2) of section 23;
Registration/licensing.
Product and its pricing.
Investment of fund.
Solvency margin.
Appointment of actuary.
Appointment of chief executive.
Power of investigation and inspection
Accounts balance sheet.
Intermediaries.
Surveyors and loss assessors.
Functions and
Responsibilities
The following are the functions and responsibilities of Accounts department
Accounts:
Finalization of Accounts within two months of end of financial year.
Bank Reconciliation: on quarterly basis and when needed.
Correspondence with Ministry and other outside agencies
Investments :
Monitoring of the bank balances on day to day basis
Timely placing of the deposits,
updating of the control sheet and
reconciliation of the control sheet with the books of accounts on quarterly basis
Verification of claims such as TE Bill and off-cycle payments of staffs etc.
All matters relating to release of Advance / instalment of the loans
CPIO of Accounts matters and all accounts related RTI matters.
Maintaining respective files and documents, movements of files through RNI and on- going status
updating in RNI.
Any other works which may be assigned from time to time by Supervisory officer / HOD.
Taxation:
Salary
Processing of the salary
Timely Remittance of the dues such as PF, Superannuation etc.
Matters relating to Officers and Employees on deputation
Taxation related matters both for employees and outside agencies (Including issuance of Form 16
and 16A)
Timely remittance of the Tax deducted at sources and filing of the returns
Support in Finalization of the Accounts
Matters relating to IRDA Superannuation and IRDA Provident Fund Trusts
Investment of PF Funds
Timely Accounting of the receipts
Reconciliation of Superannuation Account with LIC on half yearly basis.
Preparation and disbursement of the statement of the members (not later than six months
from end of financial year)
Finalization of the trust accounts not later than six months from the end of the financial year
Processing of the loan applications of the Officers and Employees as per the rules of the
trusts
Timely payments of the dues on retirement / resignation etc. of the officers and employees
INFORMATION TECHNOLOGY DEPARTMENT
Procurement
Network Management
Hardware & support Database and Systems Administration
Website maintenance
Help support for IRDAI Users
Mail tracking Applications (RNI)
RTI Application
Intranet
Internal Circular Numbering
applications (Supporting Biometric attendance
the internal functions of ATI database
Authority) Referral Database
CBR Module
RAP (Rural Authorised persons) module for CSS
IR (Insurance Repository) module
•Integrated Grievance Management System Agency
Licensing
IT policy and guidelines for Industry
Business Analytics ProjectLicensing applications
External
•Online filing
Applications (Industry
•Reports and Analytics
facing applications) and
Functions and Responsibilities of Actuarial Department
Formulation and amendment of regulations/legislations pertaining to
Actuarial matters.
To coordinate with Institute of Actuaries of India in bringing out Guidance
Notes to be issued in concurrence with the Authority to enable suitable and
necessary practices to evolve.
Examining with reference to various actuarial related aspects such as
Capital Adequacy & Validity of Assumptions for facilitating Registration
of all Insurance Companies.
Approval of Appointment of Appointed Actuary and related information.
Product Filing & Approval Process involving design acceptability,
assumptions and pricing validation, financial viability, reinsurance
arrangement.
Allotment of UIN for all life insurance product and uploading the product
list in the web portal.
Examining of the following reports submitted by the insurance companies:
Analysis of Actuarial Report and Abstract of life insurance companies.
Analysis of Appointed Actuary Annual Report of life insurance companies.
Analysis of Economic Capital Reports of all insurance companies
Analysis of Asset Liability Management (ALM) policy of all insurance
companies.
Analyse the IBNR report all non-life and standalone health insurance
companies.
Solvency Margin of all Insurers on Quarterly/Annual basis.
Functions and responsibilities of Agency Distribution
department
The following are the functions and responsibilities of Agency
distribution department:
Piloting Regulatory changes for individual and corporate
Agents.
Preparation of discussion papers relating to development of
individual agents.
Providing inputs to Inspection Department.
Receiving and processing of complaints and grievances
Processing reporting format changes
Handling RTI and Parliamentary Questions
Providing statistical information for annual reports and other hand books
and monthly periodicals
Processing of new and renewal applications of Corporate Agents.
Verification of financials and annual returns of the Corporate Agents
Cancellation/surrender of corporate agency licenses
Preparation of discussion papers relating to development of corporate
agency and bancassurance channels
Facilitating information flow to other departments
Inspection reports analysis and further processing
Issues referred by other departments, ministry and other regulators.
Updating of Corporate Agency Portal.
Liaison with the vendor for enhancements to the Agency Portal
Functions and Responsibilities of Board
Secretariat Department
The following are the jobs listed as under:
Conducting meetings of the Authority, Insurance Advisory
Committee (IAC) and meetings of Chairman with Heads of
Departments (HoDs) by coordinating various activities;
Noting and drafting of minutes of the meetings of the
Authority and Insurance Advisory Committee
Noting and drafting of Record of Discussions of meetings of
Chairman with Head of Departments
Follow-up with the various Departments for Action Taken
Reports (ATR)
Matters relating to Gazette Notifications
Maintaining respective files and documents
Functions & Responsibilities of Brokers Department
The main functions of the Insurance Brokers Department are
as follows.
Licensing:
Registration, processing of fresh applications and on being
satisfied that the applicant fulfills all the conditions
specified for the grant of license, issues the license for a
period of three years.
Processing of renewal applications and on being satisfied
that the applicant fulfills all the conditions specified for a
renewal of the license, renew the license for a period of
three years.
Processing of applications for change in category of license
and grant license for any other category on fulfilling the
requirements of the regulations.
Post Licensing matters:
Processing of proposals relating to change in shareholding,
opening of branches, FDI limits, change of address, change
of name, reissuing of FDR's, surrender of licenses, issues
arising out of analysis of annual audited accounts etc.,
Inspection Reports/Complaints/Grievances:
Analysis of inspection reports, communication of findings,
scrutiny of replies, execution of action on non-compliance
matters/violations of regulations.
Processing of complaints, investigations, and enquiries
Attending to the grievances filed by brokers /against
brokers on various matters
Functions and Responsibilities of Life Department:
It is primarily responsible for work related to regulatory approvals, new
regulation making, supervision related to Life Insurance companies and
MIS/Inputs for policy making to Authority, Chairperson, Members.
The following are the details of Functions and Responsibilities:
Registration of New Life Insurance Companies
Approval for opening of new places of business by Life Insurers as per
Section 64 VC of the Insurance Act,1938
Section 34A (of the Insurance Act,1938) approvals related to appointment,
termination and remuneration of Whole Time Directors of Insurance Cos.
Approvals for Applications of Life Insurers under Issuance of capital
regulations,2015
Approval of change of name of Life Insurers
New Product Review in terms of the Sales Literature, Proposal Forms and
Policy Document submitted along with the File and Use Application.
Review of the minor modifications made to the products (Sales Literature,
Policy Documents) through Use & File Guidelines.
Approval of Referral Companies under Sharing of Database for Distribution of
Insurance Products Regulations, 2010.
Matters pertaining to Life Insurance Council
Review of Advertisements filed by Life Insurers
Inputs to Enforcement wing on Life Insurance related aspects
Review of Micro Insurance Regulations, Group Insurance Guidelines, Other
Market conduct related matters
New Regulation making related to market conduct related Life Insurance, Rural
and Social sector Obligations for Insurers, Outsourcing
Analysis of Fraud Monitoring reports submitted by Life Insurers.
Review of regulatory returns pertaining to Outsourcing, Trade Logos, Key
Management Personnel submitted by Life Insurers.
Offsite monitoring of market conduct thru regulatory returns.
Responses to RTI applications and Parliamentary Questions.
Review of Regulatory returns and generation of business MIS,
Correspondence with Ministry and Government Departments.
Functions and Responsibilities of Non-Life Department
Registration of Insurers
Approval of Liaison offices
Approval of Office opening/closing/relocation applications
Inputs for legal cases
General complaints and enquiries
Government of India and VIP references
Parliament Queries
Motor Third Party Pricing
Examination and noting of Products and Advertisements
Examination of various returns
Approvals under section 34A of the Insurance Act
Functions and Responsibilities of Surveyors Department
In exercise of the powers conferred by sections 42D, 64 UM and 114A of
the Insurance Act, 1938, as amended by The Insurance Laws (Amendment)
Act, 2015 and section 26 of the Insurance Regulatory and Development
Authority Act, 1999, the Authority framed IRDAI Insurance Surveyors and
Loss Assessors Regulations, 2015.
The functions include:
Enrolment of trainee surveyors
Grant of License (Fresh and renewal) to individual and corporate surveyors
Maintenance and updation of surveyor data
Liaison with various stakeholders including Govt. of India with regard to
the matters relating to licensing of surveyors and loss assessors, their
duties, responsibilities, code of conduct and other professional
requirements as stipulated under section 64 UM of the Insurance Act,
1938.
To protect the interest of and secure fair treatment to
policyholders .
To bring about speedy and orderly growth of the
insurance industry (including annuity and
superannuation payments), for the benefit of the
common man, and to provide long term funds for
accelerating growth of the economy;
To set, promote, monitor and enforce high standards
of integrity, financial soundness, fair dealing and
competence of those it regulates;
To ensure speedy settlement of genuine claims, to prevent
insurance frauds and other malpractices and put in place
effective grievance redressal machinery;
To promote fairness, transparency and orderly conduct in
financial markets dealing with insurance and build a reliable
management information system to enforce high standards of
financial soundness amongst market players;
To take action where such standards are inadequate or
ineffectively enforced;
To bring about optimum amount of self-regulation in day-to-
day working of the industry consistent with the requirements
of prudential regulation.
Registration of Complaints with the IRDAI
by Policyholders:
1. Can make use of the Bima Bharosa system -
IRDAI Portal at
https://bimabharosa.irdai.gov.in/ for
registering the complaints themselves and to
monitor the status of the complaints.
2. Can send the complaint through Email to
complaints@irdai.gov.in.
3. Can call Toll Free No. 155255 or 1800 4254
732.
4. Apart from the above options, if it is felt necessary
by the complainant to send the communication in
physical form, the same may be sent to IRDAI
addressed to:
Insurance Regulatory and Development
Authority of India(IRDAI)
Policyholder's protection & Grievance Redressal
Department – Grievance Redressal Cell.
Sy.No.115/1, Financial District, Nanakramguda,
Gachibowli, Hyderabad – 500 032.
https://irdai.gov.in/
