Full Form of IRDA – Insurance Regulatory and Development Authority of India
The full form of IRDA is the “Insurance Regulatory and Development Authority of India.” The Insurance market in India is a huge market, and to regulate this whole market, a regulator is set up by India’s government. IRDA is basically a statutory and autonomous body means whose act is passed by the parliament of India to regulate the insurance and reinsurance market in India’s territory.
The central office or the headquarters of the IRDA is located in the Hyderabad, Telangana. This headquarters control all the field offices.
Entities Regulated by IRDA
Being as an insurance regulator IRDA regulates many entities which are as follows:
#1 – Insurance Marketing Firms
Insurance marketing firms are a very important player in the insurance market. This entity aims to procure insurance products and distribute and service these products in the market.
#2 – Third-Party Administrators
The third-party administrators are basically active in the health market and provide services regarding health care insurance and claim to the policyholders.
#3 – Individual Agents
An individual agent is the authorized person by the IRDA who sells the policies to the public and also provides the service regarding the claims etc. He got a license from the IRDA in any type of insurance like life insurance, health insurance, etc.
#4 – Insurance Brokers
An insurance broker is actually a mediator between the company and policyholder. He gives expert advice to the customer which policy is beneficial for him, etc. He gets commission from both sides per sale.
#5 – Loss Assessors
Loss assessors are actually the field officers who assess the claim file and check the party’s loss during the incident, like fire and accident loss, etc. It is generally in general insurance cases.
#6 – Web Aggregators
The web aggregators are the persons who provide information about the different insurance policies on different websites. They deal with the client who buys policies online through various websites etc.
It performs many types of functions; some are as given below:
- The first and foremost function is to register the companies which perform insurance business in the market.
- To keep a check on the companies and their day-to-day conduct so that there should be no mal-administration.
- To take action on the fraud and where proper standards are not maintained so that customers not get looted.
- Another main function of the IRDA is to promote fairness and transparency in the industry so that there is a harmonious atmosphere.
- To ensure that there is the speedy settlement of claims and there is no harassment with the companies’ policyholder.
- To ensure the speedy and proper growth of the insurance industry for the betterment of the country’s economy.
- To monitor and enforce the high standard of integrity and fairness in the industry.
- To keep a check on the monopolistic activities.
How to Apply for the Exam?
IRDA conducts an online exam every year to recruit insurance agents in different insurance companies. To aim of this exam is to scrutinize and choose the best candidate for the insurance market.
The basic eligibility to sit in the IRDA exam is 12th from a recognized school/board. The minimum age to take an exam is 18, and there is no upper limit of age.
- Interested candidates who want to apply for this exam have two options, ie. Online and offline mode. First, if a candidate wants to apply by online mode, he has to visit the IRDA’s official webpage and submit the online form with the correct information. He has to choose an exam center and also have to pay a nominal fee of Rs 200. After submitting the online form, he has to take a printout of that form and keep it for future reference.
- Those who are interested in filling the form by offline mode has to download a detailed form and after filling every column of this form he has to attach a fee slip (whether through challan in the bank draft), and that candidate has to send this form to the registered address of IRDA.
- After receiving the forms from different regions of the country, IRDA conducts a national level exam in various centers across the country and prepares a merit list on the basis of marks secured by the candidates. And at last, the successful candidates get the license to pursue their career as the insurance agents.
There are so many Insurance and reinsurance companies in the market, including private and government. The insurance market deals with the money of customers, and also, there is a chance of fraud and other illegal activities, including money laundering and black money. To save the rights of the customer as well as companies, this regulator is established so that companies and customers feel secure, and there should be no case of fraud, and there should be no Mis-management of the funds. Indeed, IRDA secures the interest of policyholder and provide a hassle-free insurance atmosphere.
IRDA is providing a fraud-free environment to the insurance industry in the country. It regulates all the other affairs of this industry, including administrative affairs, political affairs, and economic affairs. But this is no exaggeration to say that IRDA also faces some challenges and messing with some problems. There is more political interference in the governing body of IRDA, the members who are there in the council are appointed by the ruling parties in the power, and also, there is a bias in appointed the members.
There are also cases of corruption in the IRDA because, in the market, there are some elite groups who are pursuing mal-practices but did not detain because they give bribes to the officials of IRDA. So there is a need for inspection from top to bottom in IRDA. Also, the duty of government and also of the judiciary of the country to provide freedom to IRDA in their conduct means there is a need for autonomy.
This has been a guide to the Full Form of IRDA and its definition. Here we discuss functions, an entity regulated by IRDA, and how to apply for the insurance regulatory and development authority exam. You may refer to the following articles to learn more about finance –