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News: The Insurance Regulatory and Development Authority of India (IRDAI) has taken a significant step to control the steep rise in health insurance premiums for senior citizens. It has issued a directive capping annual premium hikes at 10% for health insurance policies covering individuals aged 60 years and above.
About IRDAI
- The Insurance Regulatory and Development Authority of India (IRDAI) is the statutory body responsible for regulating and promoting the insurance industry in India.
- It oversees both life and non-life insurance sectors to ensure fair practices, consumer protection, and financial stability in the industry.
- Establishment: IRDAI was established in 1999 under the Insurance Regulatory and Development Authority Act, 1999.
- It became fully functional in 2000, taking over the role of monitoring and regulating the insurance sector in India.
- Structure: IRDAI is a 10-member body, consisting of:
- A Chairperson (appointed by the government)
- Five full-time members
- Four part-time members
- These members are appointed by the Government of India and oversee various aspects of the insurance industry.
The primary objectives of IRDAI are:
- To protect the interests of policyholders
- To promote fair competition among insurers
- To ensure the financial soundness of insurance companies
- To increase insurance penetration and accessibility
- To regulate and control premium rates and ensure transparency
Key functions of IRDAI
IRDAI performs several critical functions, including:
- Granting licenses to insurance companies, agents, and intermediaries.
- Monitoring premium pricing to prevent unfair charges.
- Ensuring consumer protection by handling grievances and claims disputes.
- Framing and enforcing regulations for the insurance industry.
- Promoting innovation in insurance products while ensuring stability.
- Encouraging financial inclusion by expanding insurance reach to rural areas.
- Supervising solvency margins to ensure insurers have enough funds to meet claims.
Major reforms initiated by IRDAIIRDAI has introduced several key reforms to modernize and regulate the insurance sector, including:
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