IRDA Act was passed by parliament in the year December’1999 and it received president approval only in January’2000. The chief aim of the authority is

“To protect the interest of holders of Insurance policies to regulate, promote and ensure orderly growth of Insurance industry & for matters connected therewith or incidental thereto.”

Role of Insurance Regulatory and Development Authority (IRDA)

To shield the interest of and secure reasonable treatment to insurance policy holders

To bring brisk and precise development of the insurance industry or sector so as to give advantages to the common man furthermore to give long term funds to quickening development of the economy.

To set, advance, screen and apply exclusive requirements of respectability, reasonable managing, monetary practicality and ability of those it controls.

To ensure that insurance policy holder gets exact, precise, clear and right data about the items and administrations gave by insurance agencies and additionally make clients mindful about their obligations and obligations in such manner.

To guarantee fast settlement of veritable cases, to avert insurance frauds, tricks and different misbehaviours and set up agent grievance redressal machinery.

To support straightforwardness, decency, and precise behaviour in financial markets managing protection and construct a dependable administration data framework so as to authorize exclusive requirements of budgetary soundness amongst business sector players.

To take suitable activities where such benchmarks don't win or are lacking and insufficiently implemented.

To realize ideal measure of self-direction in everyday exercises of the business solid with the necessities of prudential control.