Regulation of Insurance Sector in India

Insurance Regulatory and Development Authority is the main regulatory authority of insurance sector in India.

The IRDA Act was passed in December, 1999 with a view to

1. Provide for establishment of an Authority

2. Make amendment in

  • Insurance Act, 1938
  • LIC Act, 1956
  • General Insurance Business Act, 1972

Insurance Act empowers the IRDA for:

  • Registration for insurance companies
  • Monitoring the terms of business
  • Making regulations for the conduct of business
  • Inspecting documents of insurance companies
  • Issuing directions
  • Approvals of premium rates and plans
  • Verifying solvency margins
  • Scrutiny of accounts and valuation reports
  • Adjudicate disputes between insurers and insurance intermediaries
  • Appointment of additional directors
  • Taking over the management of insurer through the appointment of an ‘Administrator’
  • Settlement of disputes relating to policy claims not exceeding Rs. 2000.