IRDAI constitutes Suresh Mathur committee to review norms related to Insurance Marketing Firms

The Insurance Regulatory and Development Authority (IRDAI) has set up 10-member committee to review norms related to Insurance Marketing Firms (IMF) with an aim to increase insurance penetration in the country. The committee will be headed by Suresh Mathur (ED-IMF, IRDAI).

Terms of Reference

The committee has been asked to revisit IRDAI (Registration of Insurance Marketing Firms) Regulations, 2015. It will recommend guidelines on areas on which regulations of IMFs are silent. It will also recommend measures for strengthening distribution channel of IMFs by taking up products which fall under jurisdiction of other financial sector regulators.

Background

IMF’s new distribution channel was introduced by IRDAI in 2015, with objective of increasing insurance penetration through area-wise registration approach. The channel has now been in operation for three years. The committee was constituted to review existing regulations essential for distribution channel to evolve and fulfil the objective of spreading insurance coverage to all layers of the society.

Insurance Regulatory Authority of India (IRDA)

IRDA is an apex statutory body that regulates and develops the insurance industry in India. It was constituted as per provisions of Insurance Regulatory and Development Authority Act, 1999. It is headquartered in Hyderabad. Telangana.
Functions of IRDA: It protects rights of insurance policy holders, provide registration certification to life insurance companies and renew, modify, cancel or suspend this registration certificate as and when appropriate. It also promotes efficiency in conduct of insurance business, promotes and regulates professional organisations connected with insurance and reinsurance business. It also regulate investment of funds by insurance companies, adjudicates disputes between insurers and intermediaries or insurance intermediaries.

Month: Current Affairs - June, 2018