The insurance regulator offers policyholders the right to voice their complaints against insurance companies
The Insurance Regulatory and Development Authority (IRDA) was constituted to regulate and develop insurance business and re-insurance business in India. As a key part of its role, the insurance regulator is responsible to protect the rights of policyholders. Listed below is a comprehensive picture of duties, powers and functions of the IRDA.
IRDA provides a certificate of registration to both life and general insurance company.
IRDA is responsible for the renewal, modification, withdrawal, suspension or cancellation of this certificate of registration.
IRDA frames regulations on protection of policyholders’ interests.
It offers policyholders the right to voice their complaints against insurance companies.
- The IRDA has set up the grievance redressal cell to take up the complaints of the policyholder.
- It specifies the requisite qualifications, code of conduct and practical training for insurance intermediaries and agents.
- The regulator promotes efficiency in the conduct of insurance businesses.
- It promotes and regulates activities of professional organisations connected with life and general insurance.
- It levies fees and other charges to carry out the purposes of the IRDA Act.
- It can call for information from, undertake the inspection of, conduct enquiries including the auditing of insurers, agents, brokers and other organisations connected with the business of insurance.
- It specifies the form in which books of account should be maintained and statements of accounts should be rendered by insurers and other insurance intermediaries.
- It regulates the investment of funds by insurance companies.
- It regulates the maintenance of margins of solvency.
- It adjudicates disputes between insurers and intermediaries or insurance intermediaries.
- The regulator specifies the percentage of premium income of the insurer to finance schemes for the promotion and regulation of certain specified professional organisations.
- It specifies the percentage of life insurance business to be undertaken by an insurer in the rural or social sector; and it exercises any other powers as may be prescribed.