INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999



INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT, 1999



The Government of India established the Insurance Regulatory and Development Authority Act, 1999 to regulate private sector insurance companies to protect and promote the interest of the holder of insurance policies.
                                       
Composition of Officers:-


IRDA consists of the following members: -
I. A Chairperson;
Second. No more than five full-time members;
Third. No more than four part-time members.
The Central Government appoints from among those who have the capacity and standing who have knowledge or experience in life insurance, general insurance, actuarial science, finance, economic, law, accounting, administration or any subject which they have Seems useful for authority.

The central government, appointing the chairperson and full-time members, said that at least one person should have knowledge or experience in life insurance, general insurance, or actuarial science respectively.
                                                
Tenure of office of Chairperson and others members-


1)    1) The Chairman and all other full-time members shall hold office for five years from the date on which they enter their office and shall be eligible for reappointment:
Provided that after attaining the age of sixty-five years, a person cannot assume office as a full-time person.
Provided that the person cannot hold office as members full time, as he has attained sixty-two years of age from the date of entering his office. A part-time member shall hold office for a period not exceeding five years from the date on which he enters his office.

Removal from office:- The Central Government can remove members from office, if any-
A) has been declared or declared as a bankrupt; or
B) if members become physically or mentally incapable of acting as members; or
C) If the members have been convicted of any offense, which in the opinion of the Central Government is involved in moral cruelty; or
D) has acquired a financial or other interest that is likely to affect their function as members biased; or
E) has misjudged its position so much that it has made the continuation of the office inconvenient to open intrigue.

Administrative power of the Chairman: - The Chairman shall have the power of General Superintendent and the power to direct the administrative matter of the Authority.
Power of Insurance Regulatory and Development Authority
The following are the strengths of IRDA: -
1. It is compulsory for all insurance companies to register with IRDA.
2. IRDA determined the capital structure of the company.
3. Companies can only do insurance business.
4. Companies have to deposit the amount set by IRDA with RBI.
5. Companies have to submit their account and balance sheet to IRDA.
6. IRDA will determine the investment of assets as approval.
7. IRDA determined the nature of general insurance business.
8. Companies are required to submit their property details to IRDA every year.
9. IRDA permission is required for appointment of Chief Executive Officer.
10. All insurance agents must be licensed from IRDA.

11. If companies fail to make their own rules and regulations, IRDA has the power to impose fines for companies.

Duties of IRDA:-


The work of insurance agencies will be managed in the accompanying approach
Persons to be employed,
· nature of Business,
Covering risks

Tenure and agreement to cover risk etc.

Function of IRDA:-


1.    1. IRDA issues certificate of registration.

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