Chapter 16 – Regulatory Aspects
The prime purpose of insurance regulation is to protect the policyholder. The policyholders pay money and buy the insurance policy. They should be assured that the insurance policy they bought will be honoured by the insurance company.
Insurance and Regulatory and Development Authority (IRDA) is the insurance regulator in India. The basic objective of IRDA is to protect the interest of policyholders and to regulate, promote and ensure the orderly growth of the insurance industry.
The IRDA was incorporated as a statutory body in April 2000.
The key objectives of IRDA include:
Promoting competition to enhance customer satisfaction with competitive premiums Regulating orderly growth of the insurance sector
The Life Insurance Council was constituted under Section 64 A of the Insurance Act, 1938. It functions through the executive committee and several sub-committees and includes all life insurance companies in India. It develops and coordinates all discussions on behalf of the industry with the government, IRDA and the public.
In other words, LI Council is the face of the insurance industry.
General Insurance Council represents the collective interests of the non-life insurance companies in India.
Tariff Advisory Committee (TAC) was established by Section 64 U of the Insurance Act, 1938.
The function of TAC is to regulate the rates and other terms and conditions offered by non-insurance companies. TAC is also the data repository of non-life insurance companies.
Recruitment, Training and Licensing of Agents: