Insurance laws and regulations in India takes care of all matters related to various insurance companies in the country. Much of the development and growth of the insurance sector in India is due to the government's decision to nationalize the insurance business and to allow private and foreign insurance companies to establish their businesses here. In India, there is one regulatory authority i.e. IRDAI which oversees different functioning of the life insurance companies in India and provide them with guidelines.
Insurance Regulatory and Development Authority (IRDAI)
Insurance Regulatory and Development Authority (IRDAI) is the controlling body, overseeing important aspects and functioning of various insurance companies in India.
Established by the government, it safeguards the interest of the insurance policy holders of the country.
Some of IRDAI's functions include:
- To regulate, ensure and promote the orderly growth of the insurance business.
- To prescribe regulations on the investment of funds by insurance companies.
- To regulate the maintenance of the margin of solvency.
- To adjudicate the disputes between insurers and intermediaries.