Page 107 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes (f) promoting and regulating professional organisations 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 organisations 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 organisations 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.

8.2.2 Role of IRDA

Insurance regulator IRDA was set up as there felt the need:
1. To set up an independent regulatory body, that provides greater autonomy to insurance
companies in order to improve their performance.
2. To enable the insurance companies to act as independent companies with economic
motives.

3. To protect the interest of holders of insurance policies.
4. To amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General
Insurance Business (Nationalisation) Act, 1972.

5. To end the monopoly of the Life Insurance Corporation of India and General Insurance
Corporation and its subsidiaries.
IRDA has ensured a satisfactory progress for the insurance industry in India since liberalisation.
It is due to various efforts made by it that the public confidence in the industry is positive today
and the industry on the whole is far more dynamic and has scored well on number of parameters.
In the year 2000, IRDA started giving licenses to private insurers and ICICI prudential and
HDFC Standard Life insurance became the first private insurers to sell a policy.

102 LOVELY PROFESSIONAL UNIVERSITY