Role of Insurance Regulatory development Authority:
Protecting the interests of policyholders.
Establishing guidelines for the operations of insurers and brokers.
Specifying the code of conduct, qualifications and training for insurance intermediaries and agents.
Promoting efficiency in the conduct of insurance business.
Regulating the investment of funds by insurance companies.
Specifying the percentage of business to be written by insurers in rural sectors.
Handling disputes between insurers and insurance intermediaries
Indian insurance industry has seen a significant growth over the past few years on account of growing national economy, increasing per capita income, growing consumer awareness about insurance products, and the entry of foreign players in the Indian market bringing in more innovative products. The Indian insurance industry operates through life and non-life segment, with life insurance, motor and health insurance being the major industry drivers. With the development of the Insurance sector, the premium received can be deployed in long term projects like infrastructure as the tenure matching becomes easy. The Indian Insurance Sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country’s GDP. Overall insurance penetration (premium as percentage of GDP) in India has increased from 2.3% in 2001 to 5.2% in 2011. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.
IRDA (Insurance Regulatory & Development Authority):
In 1999, IRDA was constituted as an autonomous body to regulate and develop the insurance industry. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and...
Please join StudyMode to read the full document