Insurance Regulatory and Development Authority of India (IRDAI)
Source: PIB
GS II: Economy
Overview
- News in Brief
- About Insurance Regulatory and Development Authority of India (IRDAI)
Why in the News?
Now, people above the age of 65 will be able to purchase new health insurance policies as the Insurance Regulatory and Development Authority of India (IRDAI) has removed the age cap on buying health insurance policies, effective from April 1, 2024.
News in Brief
- Earlier, individuals above the age of 65 were not allowed to purchase policies.
- But the changes that have come into effect from April 1, 2024 have now enabled any individual, regardless, of age to be eligible to purchase a health insurance policy.
New health insurance rules
- IRDAI has asked insurers to offer health insurance products to cater to all age groups.
- This new decision by the IRDAI is aimed at creating a more inclusive healthcare ecosystem in India.
- This will encourage insurance provider companies to diversify their offerings.
- The regulator body has asked the providers to introduce ‘tailored policies’ for specific demographics including senior citizens and also establish dedicated channels for handling claims and grievances.
Insurance Regulatory and Development Authority of India (IRDAI)
- The Insurance Regulatory and Development Authority of India (IRDAI) plays a pivotal role in overseeing the insurance sector in India, ensuring its stability, growth, and protection of policyholders’ interests.
- Established under the Insurance Regulatory and Development Authority Act, 1999.
- IRDAI functions as an autonomous statutory body mandated with regulating and promoting the insurance industry.
Key roles and functions
- Regulatory Framework
- IRDAI is entrusted with the responsibility of formulating and implementing regulations, guidelines, and frameworks governing the functioning of insurance companies in India.
- This includes issuing licenses to insurance companies, intermediaries, and other stakeholders, ensuring compliance with regulatory requirements, and prescribing standards for insurance products and services.
- Consumer Protection
- Safeguarding the interests of policyholders is paramount for IRDAI.
- It ensures fair treatment of policyholders by monitoring insurance practices, addressing grievances, and enforcing measures to prevent mis-selling, fraud, and unfair practices within the industry.
- IRDAI also promotes transparency and disclosure norms to empower consumers with relevant information for informed decision-making.
- Promotion of Development
- IRDAI actively promotes the development and growth of the insurance sector by fostering innovation, encouraging competition, and enhancing market efficiency.
- It facilitates the introduction of new insurance products and services tailored to meet evolving consumer needs, thereby expanding the reach and penetration of insurance across diverse segments of society.
- Financial Stability
- Maintaining the financial stability of insurance companies is crucial for IRDAI.
- It regulates the solvency, capital adequacy, and risk management practices of insurers to mitigate systemic risks and ensure their long-term viability.
- IRDAI conducts regular inspections, monitors financial performance, and implements corrective measures to uphold the stability and integrity of the insurance sector.
- Market Conduct
- IRDAI promotes ethical conduct and professionalism among insurance companies and intermediaries.
- It establishes codes of conduct, ethics, and standards of practice to uphold the integrity and reputation of the insurance industry.
- IRDAI also undertakes initiatives to enhance the skills and capabilities of insurance professionals through training and certification programs.
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