What are the salient features of IRDA Act 1999?

The following are salient features of the IRDA Act (1999): The insurance sector in India has been thrown open to the private sector. The second and third schedules of the Act provide for removal of existing corporations (or companies) to carry out the business of life and general (non-life) insurance in India.

What is IRDA and its features?

Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the Mission of IRDAI as: “… to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto……” Functions and Duties of IRDAI.

What are the salient features of Insurance Act, 1938?

The salient features of this Act were as follows:

  • Constituting a Department of Insurance to supervise and control insurance business.
  • Compulsory registration of insurance companies & submission of annual financial returns.
  • Provision for initial deposits to allow only serious players in the field.

Which of the following is the predecessor of the IRDA Act 1999?

The Insurance act, 1938 is the predecessor of the IRDA Act,1999.

When was IRDA Act passed?

Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and development of the Insurance sector in India.

What is IRDA Regulation Act 2002?

1. Short title and commencement — (1) These regulations may be called the Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2002. (2) They shall come into force on the date of their publication in the Official Gazette. (a) “Act” means the Insurance Act, 1938 (4 of 1938);

What are the functions of IRDA Mcq?

Solution(By Examveda Team) The function of IRDA is to regulate insurance business in India. For many years the insurance sector of India was protected. The IRDA Act of 1999 allowed the entry of private companies in the insurance sector. It also allowed for 26% investment by foreign companies.

What is Section 42 of the insurance Act?

Appointment of insurance agents. –(1) An insurer may appoint any person to act as insurance agent for the purpose of soliciting and procuring insurance business: Provided that such person does not suffer from any of the disqualifications mentioned in sub-section (3).

What are the features of life insurance?

Features of life insurance plans

  • Issued in the name of the policyholder.
  • Flexible premium payments.
  • Customizable tenure.
  • Customizable sum assured.
  • Pay-out on death or on maturity.
  • Ability to assign nominees.
  • Features an investment component.

What are the objectives of IRDA 1999?

Objectives of IRDA: To promote the interest and rights of policy holders. To promote and ensure the growth of Insurance Industry. To ensure speedy settlement of genuine claims and to prevent frauds and malpractices. To bring transparency and orderly conduct of in financial markets dealing with insurance.

What is Section 42 of the Insurance Act?