INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999



INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999



The Government of India established Insurance Regulatory and Development  Authority Act, 1999 to control private sector Insurance companies for the protection and promote interest of holder of Insurance policies.


                                       
Composition of Authorities:-


The IRDA consists the following members namely:-

       I.            A chairperson ;

     II.            Not more than five whole-time members;

  III.            Not more than four part-time members.

The Centre Government appoint the members from amongst person who have ability and standing who have knowledge or experience in Life insurance, general insurance, actuarial science, finance, economic, law, accountancy, administration or any discipline which he think be useful to the Authority.

The Centre Government appointing the chairperson and the whole time members, that at least one person should have the knowledge or experience in life insurance, general insurance, or actuarial science respectively.


                                                
Tenure of office of Chairperson and others members-


1)    The Chairperson and every others whole- time members shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment:

Provided that the person cannot hold office as a chairperson as a whole time person after he has attained the age of sixty-five years.

Provided that the person cannot hold office as a whole time members after he has attained the age of sixty-two years from the date on which he enters upon his office.

A part time members shall hold office for a term not exceeding five years from the date on which he enters upon his office.



Removal from office:- The Centre Government can remove the members from office if any who-

a)     Is or has been, adjudged as an insolvent; or

b)    If the members become physically or mentally incapable of acting as a members; or

c)     If the members has been convicted of any offence which, in the opinion of the Centre Government  involve moral turpitude; or

d)    Has acquired such financial or other interest as is likely to affect prejudicially his function as a members; or

e)     Has so mishandled his situation as to render his continuation in office inconvenient to the open intrigue.



Administrative power of Chairperson:- The Chairperson shall have the power of general Superintendence and have power to direction the administrative matter of the Authority.



Power of Insurance Regulatory and Development Authority


The following are the Power of IRDA:-

1.     It is mandatory for the all insurance companies to register with IRDA compulsorly.

2.     The IRDA determined the capital structure of the company.

3.     The companies can under takes only insurance business.

4.     The companies have to deposits with RBI the amount stipulated by IRDA.

5.     The companies have to submit their account and balance sheet to IRDA.

6.     In the form of approval the IRDA will prescribed the investment of assets.

7.     The IRDA prescribed the nature of general insurance business.

8.     Companies have to submit their statement of investment assets to IRDA every year.

9.     Permission of IRDA is required for the appointment of Chief Executive officer.

10.                        License should be obtained from IRDA for all insurance agents.

11.                        If the companies fail to perform its rule and regulation, the IRDA has power for levying penalty for the companies.



Duties of IRDA:-


The working of insurance agencies will be managed in the accompanying viewpoints
·        The persons to be employed,

·        The nature of business,

·        Covering of risks,

·        Term and agreement for covering risks etc.



Function of IRDA:-


1.     IRDA issue certificate of registration.

2.     Protecting the interest of policy holders.

3.     Issuing license to agents.

4.     Specifying codes of conduct for surveyors and loss assessors.

5.     Promoting efficiency in the insurance business.

6.     Under taking inspection, conducting enquiries etc., on insurance companes.



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