Insurance Regulatory and Development Authority is the regulator of the insurance industry in India. Its main responsibilities are safeguarding the policyholders’ interests and regulating the insurance industry while promoting the growth of the insurance sector. Let’s understand more about the role of IRDA in the insurance sector.

Roles and Responsibilities of IRDA in the Insurance Sector 

  • Develop and enforce rules and regulations for insurance companies while ensuring high standards of financial soundness and integrity in insurance providers. This includes communication of changes in rules and regulations, interest rate changes, policy changes, etc. 
  • Promotes efficiency in how the insurance sector works.
  • Since the year 2000, under Section 114A of the Insurance Act of 1938, IRDA has set up regulations and accepts the registration of insurance companies. The IRDA holds the authority to renew, cancel, suspend, withdraw, grant, and modify the registration certificates.
  • Protect the interests of the policyholders - The rules and regulations set up by IRDA prioritize the interests of the policyholders. They are responsible for matters such as the settlement of claims, addressing grievances, nomination by policyholders, and other terms and conditions of the policy.
  • Long-term funding - Provide long-term funding to support the growth of the Indian economy.
  • Grievance redressal and fraud prevention – IRDA ensures the efficient and immediate settlement of legal issues and claims. It also prevents fraud and malpractices through the grievance redressal forum.
  • Taking action – IRDA takes prompt action against insurance providers who do not maintain high standards of conduct.
  • Audit of insurance companies – The IRDA has the right to call for information, conduct an audit and investigation, and undertake an inspection of the insurance company and the intermediaries involved.
  • Code of Conduct – The IRDA has set a code of conduct for the training of the insurance intermediaries and agents, as well as for loss assessors and surveyors.