INSURANCE REGULATORY

AND DEVELOPMENT
AUTHORITY OF INDIA

PRESENTED BY- HASEEF.PA

MBA BU
INSURANCE

Insurance is a contract, represented by a policy, in which an individual or entity

receives financial protection or reimbursement against losses from an insurance
company.

Insurance policies are used to hedge against the risk of financial losses, both big
and small, that may result from damage to the insured or her property, or from
liability for damage or injury caused to a third party.

Broad categories include life, health, motor, travel, home, rural, commercial and
business insurance.

An entity which provides insurance is known as an insurer,Insurance

company,Insurance carrier.

A person or entity who buys insurance is known as an insured or policyholder.

INDIAN INSURANCE MARKET

Insurance industry of India consists of 53 insurance companies of which 24

are in life insurance business and 29 are non-life insurers.

Out of 28 non-life insurance companies, there are six public sector insurers,
which include two specialized insurers namely Agriculture Insurance
Company Ltd for Crop Insurance and Export Credit Guarantee Corporation
of India for Credit Insurance.

Insurance Laws (Amendment) Act, 2015 provides for enhancement of the

Foreign Investment Cap in an Indian Insurance Company from 26% to an
Explicitly Composite Limit of 49% with the safeguard of Indian Ownership
and Control.
INTRODUCTION - IRDA

IRDA was set up in 2000.

Insurance Regulatory and Development Authority is an

autonomous apex statutory body which regulates and develops the
insurance industry in India.

It was constituted by a parliament of India act called Insurance

Regulatory and Development Authority Act, 1999 duly act passed
by government of India.

The main objective of setting up of IRDA was to promote market

efficiency and ensure consumer protection.

Its chairman and members appointed by Government of India.

HISTORY
1991: Government of India begins the economic reforms programme and
financial sector reforms.

1993: Committee on Reforms in the Insurance Sector, headed by Shri R. N.

Malhotra (Retired Governor, Reserve Bank of India) set up to recommend
reforms in insurance sector.

1994: Malhotra Committee recommends reforms after studying the insurance

sector and taking inputs from all the stakeholders. Key recommendations of
Malhotra Committee are:

a) Private sector companies should be allowed to promote insurance companies

b) Foreign promoters should also be allowed.
c) Government to vest its regulatory powers on an independent regulatory body
answerable to Parliament.
HISTORY(CONTINUES)
1996: Setting up of an interim body called the Insurance Regulatory
Authority

1999: Enactment of the Insurance Regulatory and Development Authority

(IRDA) Act, 1999.

2000: Formation of the Insurance Regulatory and Development Authority as

an autonomous regulatory body on 19.4.2000 .

In April,2000, it was set up as statutory body, with its headquarters at New

Delhi.

The headquarters of the agency were shifted to Hyderabad, Telangana in

2001.
ORGANISATIONAL STRUCTURE

IRDA is a ten member body consists of :

One Chairman (For 5 Years & Maximum Age - 60 years )

Five whole-time Members (For 5 Years and Maximum Age- 62 years)

Four part-time Members (Not more than 5 years)

The chairman and members of IRDAI are appointed by Government

of India.

The present Chairman of IRDAI is Mr T.S Vijayan.

OBJECTIVES
To promote the interest and rights of policy holders.

To promote and ensure the growth of Insurance

Industry.

To ensure speedy settlement of genuine claims and

to prevent frauds and malpractices

To bring transparency and orderly conduct of in

financial markets dealing with insurance.
FUNCTIONS

It issues the registration certificates to insurance

companies and regulates them.

It protects the interest of policy holders.

It provides license to insurance intermediaries such as

agents and brokers after specifying the required
qualifications and set norms/code of conduct for them.

It promotes and regulates the professional organizations

related with insurance business to promote efficiency in
insurance sector.
FUNCTIONS(Continues)
It specifies the conditions and manners, according to which the
insurance companies and other intermediaries have to make
their financial reports.

It regulates the investment of policyholder's funds by insurance

companies.

It also ensures the maintenance of solvency margin (company's

ability to pay out claims) by insurance companies

It regulates and supervise the premium rates and terms of

insurance covers.
FRAMEWORK
AGENT
Agent is one who has undergone requisite training, passed an examination and been
duly licensed by IRDA to sell insurance polices to the public and provide after-sales
service including assisting at the time of a claim.
His license may be for life insurance, general insurance or both.

INSURANCE REPOSITORIES
Insurance Repositories maintain data of insurance policies in electronic form on
behalf of Insurance Companies.

INSURANCE BROKER
Insurance Brokers represent you, the customer, and are licensed to give you policies
from any insurance company.
They can provide expert advice on the insurance policies suitable to you.
They are paid a brokerage by the company whose policy you finally choose.
TPAS -THIRD PARTY ADMINISTRATOR

Third Party Administrator (Health Services) are service providers to insurance

companies for processing health insurance claims and offering facilities like
cashless settlement of claims.

REFERRAL PROVIDERS

A referral entity provides data of its clients to an insurer who wishes to sell
policies to them.

It does not actually sell the policies.

It may also introduce its clients to the insurer and help the insurer sell policies.
OMBUDSMAN
The Insurance Ombudsman scheme was created by Government of
India for individual policyholders to have their complaints settled
out of the courts system in a cost-effective, efficient and impartial
way.

SURVEYORS
Service providers to a general insurance company, usually at the time of a
fire or motor insurance claim.

They carry out claim surveys and estimate the quantum of loss.
INSURANCE ADVISORY COMMITTEE
The Insurance Advisory Committee shall consist of not more than twenty-
five members excluding ex officio members to represent the interests of
commerce, industry, transport, agriculture, consumer fora, surveyors,
agents, intermediaries, organizations engaged in safety and loss prevention,
research bodies and employees' association in the insurance sector

The objects of the Insurance Advisory Committee shall be to advise the

Authority on matters relating to the making of the regulations.
NON-LIFE INSURANCE COMPANIES IN INDIA

1. Agriculture Insurance Co. of India Ltd.

2. Apollo Munich Health Insurance Co. Ltd.
3. Bajaj Allianz General Insurance Co. Ltd.4
4. Bharti Axa General Insurance Co. Ltd.5
5. Cholamandalam MS General Insurance Co. Ltd.
6. Cigna TTK Health Insurance Co. Ltd.
7. Export Credit Guarantee Corporation of India Ltd.
8. Future Generali India Insurance Co. Ltd.
9. HDFC ERGO General Insurance Co. Ltd.
10. ICICI Lombard General Insurance Co. Ltd.
11. IFFCO Tokio General Insurance Co. Ltd.
12. L&T General Insurance Co. Ltd.
13. Liberty Videocon General Insurance Co. Ltd.
14. Magma HDI General Insurance Co. Ltd
15.Max Bupa Health Insurance Co. Ltd.
16.National Insurance Co. Ltd.
17.The New India Assurance Co. Ltd.
18.The Oriental Insurance Co. Ltd.
19.Raheja QBE General Insurance Co. Ltd.
20.Reliance General Insurance Co. Ltd.
21.Religare Health Insurance Co. Ltd.
22.Royal Sundaram Alliance Insurance Co. Ltd.
23.SBI General Insurance Co. Ltd.
24.Shriram General Insurance Co. Ltd.
25.Star Health and Allied Insurance Co. Ltd
26.Tata AIG General Insurance Co. Ltd.
27.United India Insurance Co. Ltd.
28.Universal Sompo GeneralInsurance Co. Ltd.
29.Kotak Mahindra General Insurance Co. Ltd.
LIFE INSURANCE COMPANIES IN INDIA

1.Aegon Life Insurance Co. Ltd.

2.Aviva Life Insurance Co. India Ltd.

3.Bajaj Allianz Life Insurance Co. Ltd.

4.Bharti AXA Life Insurance Co. Ltd.

5.Birla Sun Life Insurance Co. Ltd.

6.Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

7.DHFL Pramerica Life Insurance Co. Ltd.

8.Edelweiss Tokio Life Insurance Co. Ltd

9.Exide Life Insurance Co. Ltd.

10.Future Generali India Life Insurance Co. Ltd.

11.HDFC Standard Life Insurance Co. Ltd.

12.ICICI Prudential Life Insurance Co. Ltd.

13.IDBI Federal Life Insurance Co. Ltd.

14.IndiaFirst Life Insurance Co. Ltd

15.Kotak Mahindra Old Mutual Life Insurance ltd.

16.Life Insurance Corporation of India.

17.Max Life Insurance Co.Ltd.

.18.PNB MetLife India Insurance Co. Ltd.

19.Reliance Life Insurance Co. Ltd.

20.Sahara India Life Insurance Co. Ltd.

21.SBI Life Insurance Co.Ltd.

.22.Shriram Life Insurance Co.ltd

.23Star Union Dai-Ichi Life Insuranc

.24.Tata AIA Life Insurance Co. Ltd.