Insurance Concepts and IRDA [Insurance Regulatory and Development Authority] - Expectations from IRDA

Expectations from IRDA

The IRDA law has been enacted with following expectations from IRDA:-

• To protect the interests of and secure fair treatment pertaining to policyholders.
• To bring about speedy, regulated and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man and to provide long-term funds for accelerating growth of Indian economy.
• To set, promote, monitor and enforce high standards of competence, fair dealing, financial soundness and integrity of those that comes under the purview of its juridiction and regulation.
• To ensure that insurance policyholders and prospective customers receive precise, clear, correct and factual information regarding Insurance products and services being offered and make them aware of their responsibilities and duties in this regard.
• To ensure speedy settlement of genuine insuranceclaims, to prevent insurance frauds, misappropriation of funds and other malpractices.
• To promote, regulate and oversee effective functioning of grievance redressal machinery and disposing off grievances in a swift manner.

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• To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build reliable MIS (Management Information Systems) to enforce high standards of financial soundness amongst market players and maintain high confidentiality of data.
• To take appropriate and corrective measures where such standards are felt inadequate or remain ineffectively enforced.
• To bring about optimum amount of self-regulation in day to day working of the insurance sector consistent with the requirements of prudential regulation.