Insurance Regulatory and Development Authority of India (IRDAI) celebrated its 25th Anniversary | Current Affairs | Vision IAS
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Insurance Regulatory and Development Authority of India (IRDAI) celebrated its 25th Anniversary

Posted 20 Apr 2024

1 min read

  • About IRDAI
    • Genesis: Formed based on Malhotra Committee recommendations.
      • Constituted as an autonomous body in 1999 and incorporated as a statutory body in 2000 (Under Insurance Regulatory and Development Authority Act, 1999).
    • Objectives: speedy and orderly growth of insurance industry, speedy settlement of genuine claims, effective grievance redressal mechanism, etc.
    • Ministry: Ministry of Finance
    • Duties and Responsibilities
      • Certify insurance companies.
      • Protect the interest of the policyholders.
      • Adjudication of disputes.

 

  • Significance of IRDAI in transforming the Insurance sector
    • Growth:
      • Insurance penetration (percentage of insurance premium to GDP) at 4.2% in 2021-22 compared to 2.71% in 2001-02.
      • Insurance Density (ratio of premium to population) at $91 in 2021-22 compared to $11.5 in 2001-02.
    • Increased Employment: new intermediaries have started operating in the market, like Corporate agents, Bancassurance (selling insurance products through banks), on-line sales, etc.
    • Modernization: The digital transformation  accelerated by the authority’s guidance on e-KYC, paperless policies, digital payments, etc.

 

Initiatives of IRDAI

  • Integrated Grievance Management System
  • Saral Jeevan Bima: a standard term life insurance product
  • Saral Pension: an immediate annuity plan
  • Bima Sugam: one stop digital platform
  • Tags :
  • IRDAI
  • Insurance Sector
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