Home Tuitions

Full form of IRDA

"Insurance Regulatory and Development Authority OF India" is the full form of IRDA. It is an entity owned by the Government of India; dominates the Indian insurance industry. IRDA headquarters is located in Hyderabad since 2001. It shifted here from Delhi. It was created by the Government of India to guide the passage of the Insurance Regulatory and Development Authority Act, 1999.

Functions of IRDA

The key functions of IRDA are given below.

  • IRDA is responsible for policy making and supervision of all Indian insurance companies.
  • It ensures policyholders' privacy regarding claims handling, policy surrender value, and so on.
  • It sets out the credentials, code of ethics and skills required for insurance intermediaries and agents.
  • A code of conduct for surveyors and loss assessors is mentioned.
  • He supervises the activities of the Tariff Advisory Committee.
  • It controls the investments of insurance companies in funds.
  • The percentage of life and general insurance activities in the rural or social sector is specified.
  • Assesses conflicts between insurers and insurance intermediaries.
  • Prevents fraud and typos in insurance contracts.
  • It guarantees quick processing of the claim.

IRDA’s Mission

  • Protect interests and ensure fair treatment of policyholders.
  • To carry out the rapid and effective development of the insurance industry (calculation of annuity and pension installments), to support the normal person and to give long-term assets to the accelerated development of the economy.
  • Establish, enforce, review and implement expectations of integrity, propriety related to money and dealing reasonably with those they manage.
  • To ensure prompt disposal of genuine cases, prevent insurance fraud and various malpractices and establish a viable grievance redressal cell.
  • To advance propriety, straightforwardness and systematic procedure in the management of insurance related to money markets and to build a solid administrative data framework to meet the increased requirements of budgetary adequacy among the showcase players.
  • To take action where these measures are inadequate or poorly implemented.
  • To achieve an ideal level of self-regulation in the day-to-day functioning of the company in accordance with the needs of the prudential directive.