Who regulates insurance companies?

This article tells you about who regulates the insurance industry and its various companies.

Deepak was a very frustrated man these days. He had just been cheated by a person claiming to be a representative of an insurance company. Deepak did not know what to do; all his requests to the company were turned down by the latter. He wondered whether the insurance industry in India was regulated or not.

In India, all the insurance companies are regulated by a body called the Insurance Regulation and Development Authority of India. The IRDA has been set up by an Act of Parliament and as such is a neutral and autonomous body. It was set up in 199 and its headquarters are in Hyderabad.

The IRDA is a 10-member body including the Chairman. There are 5 permanent and non-permanent members each in this body. It oversees all the matters related to :

1. Life Insurance
2. General Insurance
3. Reinsurance
4. Health Insurance

The main responsibilities of the IRDA  are:

• Issuing, modifying, canceling, renewing or withdrawing registrations of insurance companies.
• Protecting the interests of policyholders
• Specifying the qualifications, and other criteria for insurance intermediaries like brokers, etc.
• Specifying the roles and conduct of loss assessors, and surveyors.
• Promoting and regulating the professional institutions connected with insurance and reinsurance.
• Promoting efficiency in the field of insurance.
• Levying fees and other charges.
• Inspecting and investigating insurers, and other players in the insurance business.
• Regulating rates, tariffs, and other charges levied by insurance companies.
• Regulating a margin of solvency.
• Adjudicating disputes between insurers, and intermediaries or insurance intermediaries.

Please note that all the members of the insurance industry have to be certified and registered by the IRDA. If you are meeting an insurance broker for the first time, please ask for his IRDA credentials. 

This body also conducts an exam for the certification of all the insurance brokers. 

Also, read- Who are insurance brokers?

You may contact IRDA at this website> https://www.irda.gov.in

Do you have any queries on insurance? Please leave your questions in the comment box below.