Background of the Organisation
Before the founding of the IRDAI, the insurance industry within India was governed by the Controller of Insurance, a department of the Ministry of Finance. The Controller of Insurance was in charge of supervising and overseeing insurance businesses. Still, due to its restricted powers, the insurance industry suffered several issues, including a lack of transparency, poor consumer safety, and limited availability. The Indian government recognised the necessity for a distinct regulatory organisation to oversee the insurance industry and formed the IRDAI in 1999.Role of the Organisation
The primary function of the IRDAI is to oversee and regulate the Indian insurance industry. It is a watchdog, ensuring insurance businesses follow the government's rules and requirements. The IRDAI plays the following important roles:-
Insurance company licencing and registration
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Preservation of policyholder concerns
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Insurance sector promotion
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Premium regulation
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Dispute resolution
