Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.
Subject to the provisions of IRDA Act and any other law for the time being in force, the Authority has the duty to regulate, promote and ensure orderly growth of the insurance business and reinsurance business. The powers and functions of the Authority include:
- To issue to the applicant a certificate of registration, to renew, modify, withdraw, suspend or cancel such registration.
- To issue of license to insurance intermediaries or agents;
- To protect the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy, and other terms and conditions of contracts of insurance.
- To specify requisite qualifications code of conduct and practical training for intermediary or insurance intermediaries and agents.
- To specify the code of conduct for surveyors and loss assessors.
- To promote efficiency in the conduct of insurance business.
- To promote and regulate professional organizations connected with the insurance and reinsurance business.
- To levy fees and other charges for carrying out the purposes of this Act.
- To call information from, undertake inspection of, conduct enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business.
- Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section G4U of the Insurance Act, 1938.
- Prescribing the form and manner in which books of account shall be maintained and statement of accounts will be rendered by insurers and other insurance intermediaries.
- To regulate investment of funds by insurance companies.
- To regulate maintenance of margin of solvency.
- Adjudication of disputes between insurers and intermediaries or insurance intermediaries.
- To supervise the functioning of the Tariff Advisory Committee.
- To specify the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations.
- To specify the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector.
- To exercise such other powers as may be prescribed.