Insurance Regulatory and Development Authority of India
According to the Insurance Regulatory and Development Authority of India financial statements prepared as per Indian Accounting standards (IndAS) will be the basis for the Risk Based Capital (RBC) framework proposed for insurers in India.
About Insurance Regulatory and Development Authority of India:
- It is a statutory body formed under the Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999), for the overall supervision and development of the insurance sector in India.
- It acts under the Ministry of Finance, Government of India.
- The main goals of IRDAI are:
- To safeguard the interest of the policyholders by fair business conduct and settlement of claims within time.
- Developing and nurturing the Indian insurance industry.
- To regulate the business of insurance with transparency, fairness, and honest practice.
- Facilitating financial prudence of the insurers through solvency and stability checks of insurers.
- To regulate premium charges and policy terms for preventing unscrupulous pricing and unaffordability.
- It is responsible for registering and/or licensing insurance, reinsurance companies, and intermediaries according to the regulations.
- It sets the eligibility criteria, qualifications, and capital requirements for obtaining licenses in the insurance business.
- Composition: It consists of a Chairman, five full-time members, and four part-time members, all appointed by the Government of India.
- Head Office: Hyderabad.
Source: IRDAI forms working groups on risk-based capital framework convergence with IndAS