Report No. 190

Powers and functions of the IRDA

1.4.4 The IRDA has the duty to regulate, promote and ensure orderly growth of the insurance and reinsurance business. The powers and functions of the IRDA include:

(a) registration/ modification/ cancellation of registration of insurers; (b) to cause compliance of the requirement of capital structure of the companies as also solvency margin, insurance business in rural and social sector, submission of their returns/reports, approval and preparation of the scheme of amalgamation and transfer of insurance business;

(c) to issue licence to insurance intermediaries or agents;

(d) control over management of insurers;

(e) search and seizure;

(f) protection of interest of policy holders;

(g) promotion and regulation of professional organizations conducting insurance business;

(h) regulation of investment of funds by insurance companies;

(i) investigation and inspection of the affairs of the insurers;

(j) adjudication of disputes between insurers and insurance intermediaries;

(k) supervising functions of Tariff Advisory Committee; and

(l) framing of regulations to carry out the purposes of the Insurance Act,1938.

1.4.5 Pursuant to its powers under the IRDA Act, the IRDA has framed at least 27 sets of Regulations on various topics like preparation and submission of actuarial reports, obligations of insurers to rural and social sectors, registration of Indian insurance companies, preparation of financial statements and auditors report of 13insurance companies, form of annual statements of account and record, insurance brokers, etc. These regulations are important constituents of the Regulatory regime.

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