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 Advisor 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
- To supervise the functioning of the Tariff Advisory
- 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.
Finance, Accounts and Audit
Grants by Central Government
The Central Government may, alter due appropriation made by the Parliament by law in this behalf, make to the Authority grants of such sums of money as the Government may think it for being utilized for the purposes of this Act.
A Fund to be called “The Insurance Regulatory and Development Authority Fund” is to be established and the following sums will be credited thereto:
- All Government grants, fees and charges received by the Authority
- All sums received by the Authority from such other source as may be decided upon by the Central
- The percentage of prescribed income received from the insurer
The Fund shall be applied for meeting the following expenses
- The salaries, allowances and other remuneration of the members, officers and other employees of the Authority.
- The other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act.
Accounts and Audit
The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor General of India. The accounts of the Authority shall be audited by the Comptroller and Auditor General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor General of India. The Comptroller and Auditor-General of India and other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the officers of the Authority. The accounts of the Authority as certified by the Comptroller and Auditor General of India or any other person appointed by him n this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.