1. INSURANCE REGULATORY
&
DEVELOPMENT AUTHORITY
(IRDA)
Presented to
Prof. E.HARI PRASAD SHARMA
By
SHRUTHI & JEEVITHA (MBA IV SEMESTER)

2.  Insurance Regulatory & Development
Authority is the controlling and
regulatory apex body in the country for
insurance sector and its chairman and
members are appointed by Government
of India. IRDA’s HQ is located at
Hyderabad.

3. a) To protect the interests
of the policyholders
b) To promote, regulate and ensure orderly
growth of the insurance industry and for
matters connected therewith or incidental
thereto
c) Conduction of insurance
businesses across India in
an ethical manner.
IRDA Group 1 7/1/2012 3

4. As per the section 4 of IRDA Act' 1999, Insurance Regulatory
and Development Authority (IRDA, which was constituted by
an act of parliament) specify the composition of Authority
The Authority is a ten member team consisting of
(a) a Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)
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5.  The insurance sector in India has been thrown
open to the private sector.
 In the non life sector, IRDA would give preference
to companies providing health insurance.
 All the powers presently exercised under the
insurance act 1938 by the controller of insurance
(COI) will be transferred to the IRDA
 The act gives statutory status for the interim
insurance regulatory authority(IRA).set Up by the
central government through a resolution passed
in jan 1996

6.  on foreign promoters, the maximum of 26
percent will always be operational. They will
thus be unable to hold any equity beyond this
ceiling at any stage.

7.  Registration
 Protection
 Qualification
 Code of conduct
 Efficiency
 Fees
 Information
 Terms of business
 Books of accounts

8.  Life Insurance Premium from Rs.400 crores in
1956 to Rs.201351 crores in 2007-08 with
29 % growth
 General Insurance Premium from Rs.200
crores in 1972 to Rs.27823 crores in 2007-
08 with 11.72 % growth

9. Sector Growth % of GDP
Agriculture 2.6 17.5
Industry 8.9 26.8
Services 10.7 55.7
(Fin.& 11.7 14.7
Insurance)

10.  Irda (licensing of agents) regulation 2000
 Irda (surveyors & loss assessors )
regulation, 2000
 Irda (insurance advertisement & disclosures)
regulation, 2000

11.  Irda (obligations of insurers to rural
sectors) regulation, 2000
 Irda (investments) regulation, 2000
 Irda (third party administrators) regulation 2001
 Irda (protection of policyholder’s interest )
regulations, 2002
 Irda ( licensing of corporate agents) regulations
2002

12.  Detariffing in General Insurance from
1.1.2007 leading to greater price war & new
products in future
 Banks entering insurance market through
joint ventures with foreign finance majors
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13. Increasing Role of
 Insurance Brokers
 Bank assurance
 Corporate Agency
 IT intervention & uses
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14. Greater Job Opportunities
 For thousands of Insurance
Managers, IT Professionals
 For lacs of Insurance Advisors
 For Insurance Professionals
 For Risk Managers
 For Underwriters
 For claim Settlements
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15.  Increasing No. of Insurance companies &
Intermediaries
 Increasing Awareness about Insurance
 Growth in GDP
 Increasing No. of Middle Class
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16.  Vast No. of uninsured population
 Underinsurance
 Untapped potential for General Insurance
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17.  Increasing awareness about Health Insurance
 Increasing awareness about Personal Line
Insurance like House, Shop, Personal Accident
 Market flooded with new insurance products
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18. Presented by : Jeevitha & Shruthi
MBA IV SEM VIMS