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IRDAI marks its 25th anniversary

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Context

  • The Insurance Regulatory and Development Authority of India (IRDAI) celebrated its Silver Jubilee on April 19.

Insurance Regulatory and Development Authority of India (IRDAI)

  • IRDA was constituted in 1999 as an autonomous body after the recommendations of the Malhotra Committee report to regulate and develop the insurance industry.
  • It was incorporated as a statutory body on April 19, 2000.
  • The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938.
  • Objective: The main objective of the IRDA is to protect the interests of the policyholder and regulate the insurance industry.
  • IRDAI is under the jurisdiction of the Ministry of Finance, Government of India.
  • It has framed regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests.

Recent Initiatives by IRDAI

  • IRDAI has lifted the age cap on purchasing health insurance policies, effective from April 1, 2024. Previously, individuals were restricted to buying new insurance policies only until the age of 65.
  • Bima Sugam initiative: It aims to empower all insurance stakeholders by connecting them all through a single platform.
  • The platform uses advanced technology to simplify processes for insurance companies, policy holders’, intermediaries, insurance repositories and external data sources etc.
  • It has replaced 34 regulations with six regulations to enhance clarity and coherence in the regulatory landscape.
  • Mandatory e-insurance: IRDAI mandated the digitisation of insurance policies across all categories to streamline processes, enhance efficiency, and improve accessibility for policyholders.
  • IRDAI has decreased the health insurance waiting period from 48 months to 36 months.
  • The waiting period refers to the duration during which policyholders are not eligible to claim benefits for any pre-existing health conditions they might have during the purchase of the insurance policy.

Concluding Remarks

  • Over the past two decades, IRDAI has played a pivotal role in fostering innovation, safeguarding consumer interests, and propelling industry advancement.
  • It has revolutionized the sector by actively engaging with policyholders and prioritizing their well-being with its unwavering commitment to excellence and regulatory standards.