Page 117 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes (g) “member” means a whole time or a part time member of the Authority and includes the
Chairperson;
(h) “notification” means a notification published in the Official Gazette;

(i) “prescribed” means prescribed by rules made under this Act;
(j) “regulations” means the regulations made by the Authority.
(2) Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938
(4 of 1938) or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance
Business (Nationalization) Act, 1972 (57 of 1972) shall have the meanings respectively assigned
to them in those Acts.

7.4.2 Chapter II – Insurance Regulatory and Development Authority

3. Establishment and Incorporation of Authority - (1) with effect from such date as the Central
Government may, by notification, appoint, there shall be established, for the purposes of this
Act, an Authority to be called “the Insurance Regulatory and Development Authority”.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession
and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose
of property, both movable and immovable, and to contract and shall, by the said name, sue or be
sued.
(3) The head office of the Authority shall be at such place as the Central Government may decide
from time to time.
(4) The Authority may establish offices at other places in India.
4. Composition of Authority - The Authority shall consist of the following members, namely:–

(a) A Chairperson;
(b) Not more than five whole-time members;
(c) Not more than four part-time members,
To be appointed by the Central Government from amongst persons of ability, integrity and
standing who have knowledge or experience in life insurance, general insurance, actuarial
science, finance, economics, law, accountancy, administration or any other discipline which
would, in the opinion of the Central Government, be useful to the Authority:
Provided that the Central Government shall, while appointing the Chairperson and the whole-
time members, ensure that at least one person each is a person having knowledge or experience
in life insurance, general insurance or actuarial science, respectively.

5. Tenure of Office of Chairperson and Other Members - (1) The Chairperson and every other
whole-time member shall hold office for a term of five years from the date on which he enters
upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-
five years:
Provided further that no person shall hold office as a whole-time member after he has attained
the age of sixty two years of age.

(2) A part-time member shall hold office for a term not exceeding five years from the date on
which he enters upon his office.

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