IRDAI & Regulations

Only IRDAI can give permission to start an insurance company 2

Controls premium rates for general insurance 3

Decides where insurance companies can invest their money 4

Handles complaints and ensures fair treatment 5

Ensures companies have enough money to pay claims IRDAI Structure Formula: Chairperson + 10 Members = Total 11 members - 1 Chairperson (appointed by Government) - 5 Full-time members - 5 Part-time members Term: 5 years or age 62, whichever is earlier

Act in 1999, Action in 2000. Also, many students think IRDAI controls LIC's premium rates - this is wrong. LIC sets its own rates as it's a statutory corporation

IRDAI follows risk-based supervision. It uses early warning systems to monitor insurance companies. The authority conducts on-site inspections and off-site surveillance. Companies must maintain solvency ratio of 1.5 times (150%) minimum

IRDAI issues regulations on licensing, capital adequacy, investments, protection of policyholders' interests, and corporate governance. All insurance products need IRDAI approval before launch. The authority also regulates insurance intermediaries like agents and brokers

IRDAI mandates 15-day free look period for life insurance policies. It has established Insurance Ombudsman for complaint resolution. The authority ensures standardized policy documents and disclosure norms for transparency.