Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous apex statutory body which regulates and develops the insurance industry in India.

It was constituted by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999 and duly passed by the Government of India.

Role of Insurance Regulatory and Development Authority (IRDA)

1. To safeguard the interest of and secure fair treatment to insurance policy holders
2. To bring rapid and methodical growth of the insurance industry or sector in order to provide benefits to the common man and also to provide long term funds for speed up growth of the economy.
3. To set, uphold, watch and apply high standards of integrity, fair dealing, financial viability and capability of those it regulates.
4. To make sure that insurance policy holder receives accurate, perfect, clear & right information about the products & services provided by insurance companies & also make customers aware about their duties & responsibilities in this regard.
5. To ensure fast settlement of authentic claims, to prevent insurance frauds, scams & other misconduct and put in place operative grievance redressal machinery.
6. To enhance transparency, fairness, and orderly conduct in financial markets dealing with insurance & build a dependable management information system in order to enforce high standards of financial soundness amongst market players.
7. To take apt actions where such standards do not prevail or are inadequate & ineffectively enforced.
8. To bring about optimal amount of self-regulation in day-to-day activities of the industry reliable with the requirements of prudential regulation.


Powers & Functions to:-

(1) To protect the attention of the policy holders related to surrender value of policy, settlement of insurance claims, insurable interest, nomination by policy holders, other terms & conditions of insurance contract.
(2) For General Insurance, who assess the loss of policy holder should be stated the code of conduct.
(3) Promoting proficiency in the conduct of insurance business;
(4) Promoting and regulating professional organizations connected with the insurance and re-insurance business;
(5) Calling for information from, undertaking inspection of, conducting inquiries including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the Insurance business;
(6) Stating the form and manner in which books of account is kept and statement of accounts are rendered by insurers and other insurance mediators;
(7) Regulating investment of funds by insurance companies;
(8) Flexible maintenance of margin of solvency i.e., having sufficient funds to pay insurance claim amount;
(9) To resolve the disputes between insurers and intermediaries or insurance intermediaries
(10) Stating the percentage of life insurance business and general insurance business to be accepted by the insurer in the rural or social sector; and
(11) Exercising such other powers as is prescribed.