Insurance Regulator - Insurance Business and Market, Principles of Insurance Video Lecture | Principles of Insurance - B Com

ie professor beak agent working in
granny's fruit of science and management
or brainy group of colleges welcomes you
in this session on behalf of guru kpo
the topic for today's discussion is
another important regulatory body or
financial system that is Insurance
Regulatory and Development Authority I
have already discussed in the earlier
session about SEBI this yadah was
established structural body in the year
1999 in the Act was passed in this year
and based on this yet I started working
and is also started monitoring the
insurance business it has four primary
objectives behind its establishment
number one protecting the interest of
policyholder all types of policyholders
which are engaged in the insurance
business they may be connected with life
insurance they may be connected with
non-life insurance this statutory body
was established to protect the interest
of both life and non-life insurance
policyholders it has won it was also a
stable to ensure orderly growth of
insurance industry in India orderly
growth means no hindrance in the working
of insurance companies and as a
regulatory body it has to ensure that it
goes on when another important objective
was to amend 3x Insurance Act of 1938
LIC Act of 1956 and GIC Act of 1972
these three acts are already existing
before the ADA so ADA was supposed to
make necessary changes amendments in
these three acts to ensure protection of
interest of the policyholders as well as
a properly growth of insurance industry
and lastly to promote private players in
the insurance sector because earlier
only two insurance companies were
working which were in the public sector
one was LIC another was GIC so besides
LIC and GIC after financial
liberalisation Government of India
thought that lot of private players
while also in one to enter this market
so along them too
enter Indy private private players in
this particular insurance sector it is
performing various functions I have
already mentioned a few number one is
registration registration of all the
insurance companies who want to do
insurance business in India registration
means issuing them license then renew
their license if they violate the
provisions of this act then cancel their
license fail leaving
penalties fines etcetera this all comes
under the registrations it is also
empowered to prescribe qualifications to
those who are working in the insurance
sector then also training requirement
for those who are working in this in
this sector then it is also empowered to
conduct again like CB inspection inquiry
an audit and for all this purpose call
for information call for record from
those who have been registered with this
areeda and then conduct audit inspection
and inquiry then it is also empowered to
specify set of books which are required
to be maintained and the manner in which
those set of books is to be maintained
by the insurance companies then it is
also empowered to ensure that surplus
funds with the insurance companies are
invested in a proper way
looking to the interest of the insurance
company you might have heard that LIC is
such an investment capital investment
concern which have lot of surplus funds
which provides funds not only to
Government of India but to state
government and many public sector
undertakings it is also empowered to
specify percentage of rural business in
the total insurance business because
mostly the insurance business goes to
cities and metropolitan cities and semi
urban areas so this has also powers to
specify the out of the total business of
insurance both life and non-life what
should be the percentage of the rural
business so that rural area does not
remain uncovered out of the purview of
the yadah and lastly as in when
government make sure or prescribes many
more functions to
we perform it is authorized to perform
those functions because in government of
India above all these three institutions
key regulatory bodies the Ministry of
Finance and the under Ministry of
Finance there is a Department of Banking
and Insurance which issue issues
directions to this come this yadah and
that is why if any more directions are
issued by Government of India it is
supposed to perform all those functions
thank you thank you thank you for
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