12.
Explanation
The Insurance Regulatory and Development Authority of India (IRDA) is the regulatory body that oversees the insurance industry in India. It has both duties and powers to regulate and promote the insurance sector in the country. Some of the key duties and powers of IRDA include:
Duties:
1. Regulatory Oversight: IRDA is responsible for regulating and supervising the insurance industry to ensure that insurers, intermediaries, and other entities operate in compliance with the law and regulations.
2. Protection of Policyholders: It works to safeguard the interests of policyholders and ensure that insurance products are fair and transparent, with clear terms and conditions.
3. Licensing and Registration: IRDA grants licenses to insurance companies, agents, and brokers, ensuring that they meet the necessary criteria for conducting insurance business in India.
4. Product Approval: It reviews and approves insurance products and policies to ensure they meet regulatory standards and do not exploit consumers.
5. Setting Tariffs: IRDA may specify the tariffs or premium rates for certain types of insurance to prevent unfair pricing practices.
6. Promotion of Insurance Awareness: It plays a role in promoting insurance awareness and financial literacy among the public.
7. Dispute Resolution: IRDA assists in resolving disputes between policyholders and insurers through grievance redressal mechanisms.
8. Monitoring Solvency: It monitors the financial health and solvency of insurance companies to ensure they can meet their obligations to policyholders.
Powers:
1. Granting Licenses: IRDA has the authority to issue licenses to insurance companies, agents, and intermediaries, and it can revoke or suspend licenses if entities violate regulations.
2. Regulatory Framework: IRDA has the power to establish and enforce regulatory frameworks, including rules, guidelines, and codes of conduct for the insurance industry.
3. Product Regulation: It can review and approve insurance products, ensuring they comply with regulatory requirements.
4. Imposing Penalties: IRDA can impose penalties on insurers and intermediaries for violations of insurance laws and regulations.
5. Data Collection: It has the authority to collect data and information from insurance companies to assess their financial health and compliance with regulations.
6. Policyholder Protection: IRDA can take measures to protect policyholders’ interests, including mandating fair treatment of customers and regulating claim settlement processes.
7. Market Development: It promotes and encourages the development of the insurance market in India, including the introduction of new products and innovations.
IRDA’s duties and powers are aimed at maintaining the stability and integrity of the insurance industry, protecting the interests of policyholders, and ensuring fair and transparent practices among insurance providers.