We regulate the Indian insurance industry to protect the interests of the policyholders and work for the orderly growth of the industry.
- 1991: Government of India begins the economic reforms programme and financial sector reforms
- 1993: Committee on Reforms in the Insurance Sector, headed by Mr. R. N. Malhotra, (Retired Governor, Reserve Bank of India) set up to recommend reforms.
- 1994: The Malhotra Committee recommends certain reforms having studied the sector and hearing out the stakeholders
- Some recommended reforms
Private sector companies should be allowed to promote insurance companies
Foreign promoters should also be allowed
Government to vest its regulatory powers on an independent regulatory body answerable to Parliament
Birth of IRDAI
- Insurance Regulatory and Development Authority (IRDA) set up as autonomous body under the IRDA Act, 1999
- IRDAI’s Mission: To protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.
- Frames regulations for insurance industry in terms of Section 114A of the Insurance Act 1938
- From the year 2000 has registered new insurance companies in accordance with regulations
- Monitors insurance sector activities for healthy development of the industry and protection of policyholders’ interests