IRDA Notes for MBA

[Saksham]

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I have completed MBA Degree recently and now started for preparation for IRDA Recruitment Exam. I am looking for basic information about IRDA i.e. Role, Objectives and Functions. So tell me what should I do to get important notes based on Role, Objectives and Functions of IRDA?

[sumit]

As you want notes based on Information about Role, Objectives and Functions of IRDA (Insurance Regulatory Development and Authority), so here I am telling you something about its Role, Objectives and Functions:

IRDA - Insurance Regulatory Development and Authority

Establishment:
IRDA Act was passed upon the recommendations of Malhotra Committee report (7 Jan,1994), headed by Mr R.N. Malhotra (Retired Governor, RBI)

Headquarter:
Hyderabad, Telangana

Objectives of IRDA:
To promote the interest and rights of policy holders.
To ensure speedy settlement of genuine claims and to prevent frauds and malpractices
To promote and ensure the growth of Insurance Industry.
To bring transparency and orderly conduct of in financial markets dealing with insurance.

Organizational Structure:
One Chairman
Five whole-time members
Four part-time members

Organizational Structure Chart:



Insurance Ombudsman:
Was created by a Government of India in 1998

Functions and Duties of IRDA:
Section 14 of IRDA Act,1999 lays down the duties and functions of IRDA:
It issues the registration certificates to insurance companies and regulates them.
It specifies the conditions and manners, according to which the insurance companies and other intermediaries have to make their financial reports.
It also ensures the maintenance of solvency margin (company's ability to pay out claims) by insurance companies.
It protects the interest of policy holders.
It promotes and regulates the professional organisations related with insurance business to promote efficiency in insurance sector.
It regulates and supervise the premium rates and terms of insurance covers.
It regulates the investment of policyholder's funds by insurance companies.
It provides license to insurance intermediaries such as agents and brokers after specifying the required qualifications and set norms/code of conduct for them.

Insurance Policies Types:
Two main types: General and Life

General Insurance:
Personal Insurance policies
Commercial Insurance policies
Rural Insurance policies
Industrial Insurance policies

Life Insurance Types:
Whole life plan
Endowment
Term Plan
ULIP (Unit Linked Insurance Policy)