IRDAI sets up 3 committees to analysis regulations in insurance [ Current Affairs ]
About IRDA: IRDAI stands for Insurance Regulatory and Development Authority of India. It is an agency of Government of India for insurance sector supervision and development. Insurance Regulatory and Development Authority of India (IRDAI) is an independent top legislative organization which controls and develops the insurance industry in India.
It was founded by a Parliament of India act called Insurance Regulatory and Development Authority Act, 1999.
As stated in recently approved Insurance Act, the Insurance Regulatory and Development Authority of India (IRDAI) have established three committees which will handle review of regulations in insurance sector.
The work of these three committees is to control Insurance sector in areas of life insurance, general insurance and re-insurance which also includes registration of foreign offices of reinsurers.
- Life Insurance: Life Insurance is a contract between an insurance policy holder who is called insured and an insurer where the insurer assures to pay a selected recipient a sum of money in exchange for a premium, upon the death of the insured person.
- General Insurance: General Insurance is also called as non-life insurance policies which includes automobile and homeowner’s policies and provide payments depending on the loss from a particular financial event.
- Re-insurance: Reinsurance is purchased by an insurance company from one or more other insurance companies directly or through a broker as a means of risk management, sometimes in practice including tax qualification.
- Published on: July 29, 2015