Slide 1: INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY Slide 2: INTRODUCTION MISSION STATEMENT OF IRDA DUTIES, POWER AND FUNCTIONS OF IRDA OPERATIONS OF IRDA EXPECTATIONS FROM IRDA TYPES OF INSURANCE POLICIES NEW LAWS AND GUIDELINES HOW TO BECOME AN AGENT INTRODUCTION : INTRODUCTION The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999. MISSION STATEMENT OF IRDA : MISSION STATEMENT OF IRDA To protect the interest and secure fair treatment to policyholders. To bring about speedy and orderly growth of the insurance industry To set, promote, monitor, and enforce high standards of integrity, financial soundness, fair dealing, and competence of those it regulates. To ensure that insurance customers receive precise, clear and correct information To ensure speedy settlement of genuine claims, To promote fairness, transparency, and orderly conduct in financial markets To take action where such standards are inadequate or ineffectively enforced. To bring about optimum amount of self-regulation. DUTIES, POWER AND FUNCTIONS OF IRDA: DUTIES, POWER AND FUNCTIONS OF IRDA Issuing to the applicant a certificate of registration, renew, modify, withdraw suspend or cancel such registration. Protection of the interests of the policy-holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy, and other terms and conditions of condition of contracts of insurance. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Slide 6: Promoting and regulating professional organizations connected with the insurance and re-insurance business. Levying fees and other charges for carrying out the purpose of this Act. Calling for information from, undertaking inspection of, conducting inquiries and investigations, including audit of the insurer, 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 Tariff Advisory Committee. Specifying the form and manner in which the books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. Slide 7: Regulating investment of funds by insurance companies. Regulating maintenance of margin of solvency. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. Supervising the functioning of the Tariff Advisory Committee. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations Referred to in clause (f). Specifying the percentage of life insurance business and of general insurance business to be undertaken by the insurer in the rural or social sector, and exercising such other powers as may be prescribed. OPERATION OF IRDA: OPERATION OF IRDA IRDA developed its internal parameter to access the promoters Insurance intermediaries of IRDA IRDA Efficiency of intermediaries Recognized of IRDA IRDA has entered into MOU IRDA has come out with the Insurance Advertisement & Disclosure Regulations EXPECTATIONS FROM IRDA : EXPECTATIONS FROM IRDA To protect the interest of and secure fair treatment to policyholders. To bring about speedy and orderly growth of the insurance industry IRDA has set to promote, monitor and enforce high standards of integrity IRDA ensure that insurance customers receive precise, clear and correct information To ensure speedy settlement of genuine claims To promote fairness, transparency and orderly conduct in financial markets dealing with insurance IRDA expact to take action where standards are inadequate or ineffectively enforced. IRDA also bring about optimum amount of self-regulation TYPES OF INSURANCE POLICIES: TYPES OF INSURANCE POLICIES 1. Long-term Insurance Whole Life Assurance- Endowment Assurance- Assurances for Children Term Assurance- Annuities- 2. General Insurance Fire Insurance- Marine Insurance- Miscellaneous- NEW LAWS AND GUIDELINES: NEW LAWS AND GUIDELINES Disclosure Half-yearly basis Primary market New norms Publish i.e B/S Necessary for insurers. Awareness Data available Slide 12: Public disclosure Publish Analytical ratios Insurers to host all the forms IAIS recognized equal responsibility Individual policyholder is not posible Expert stakeholder in market ULIP for better understanding Slide 13: Advertisments by insurance companies Examination: Examination Two modes of examination: Two modes of examination Paper and pencil mode Electronic mode Minimum qualification : Minimum qualification Pass in 12 th std 18 yrs of age Has undergone practical training of 100 hrs. Disqualification: Disqualification He is of unsound mind He has found guilty of criminal breach of trust, cheating. Two types of training: Two types of training Online training Classroom training To become an agent : To become an agent Make an application On cleaaring exam designated person will issue the license along with identity card Licence is valid for 3 yrs.