ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1. Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and development of the Insurance sector in India.

Detailed explanation-2: -The IRDA Authority has the duty to promote, regulate and ensure orderly growth of the insurance and re-insurance businesses across India, subject to the provisions of this Act and any other additional law that is being enforced.

Detailed explanation-3: -The Authority acts as the regulator of the insurance industry in India and oversees the functioning of the Life Insurance and General Insurance companies operating in the country. The main objective of the IRDA is to protect the interests of the policyholder and regulate the insurance industry.

Detailed explanation-4: -Section 4 of the IRDAI Act 1999 specifies the authority’s composition. It is a ten-member body consisting of a chairman, five full-time and four part-time members appointed by the government of India. At present ( January, 2023 ), the authority is chaired by Mr.

Detailed explanation-5: -The Prudential Regulatory Authority (PRA), which is part of the Bank of England, promotes the safety and soundness of insurers, and the protection of policyholders.