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Unit 7: Insurance Regulatory and Development Authority Act (IRDA Act)

(b) Protection of the interests of the policy holders in matters concerning assigning of policy, Notes
nomination by policy holders, insurable interest, settlement of insurance claim, surrender
value of policy and other terms and conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training for intermediary
or insurance intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations connected with the insurance and
re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) Calling for information from, undertaking inspection of, conducting enquiries and
investigations including audit of the insurers, intermediaries, insurance intermediaries
and other organizations connected with the insurance business;
(i) Control and regulation of the rates, advantages, terms and conditions that may be offered
by insurers in respect of general insurance business not so controlled and regulated by the
Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);
(j) Specifying the form and manner in which books of account shall be maintained and
statement of accounts shall be rendered by insurers and other insurance intermediaries;
(k) Regulating investment of funds by insurance companies;
(l) Regulating maintenance of margin of solvency;
(m) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;
(o) Specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance business to be
undertaken by the insurer in the rural or social sector; and
(q) Exercising such other powers as may be prescribed.

7.4.5 Chapter V – Finance, Accounts and Audit

15. Grants by Central Government: The Central Government may, after due appropriation
made by Parliament by law in this behalf, make to the Authority grants of such sums of money
as the Government may think fit for being utilised for the purposes of this Act.

16. Constitution of Funds - (1) There shall be constituted a fund to be called “the Insurance
Regulatory and Development Authority Fund” and there shall be credited thereto-
(a) All Government grants, fees and charges received by the Authority;

(b) All sums received by the Authority from such other source as may be decided upon by the
Central Government;
(c) The percentage of prescribed premium income received from the insurer.

(2) The Fund shall be applied for meeting -
(a) The salaries, allowances and other remuneration of the members, officers and other
employees of the Authority;

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