Why is it in the news?
- The Insurance Regulatory and Development Authority of India (IRDAI) celebrated its 25th Anniversary.
More about the news
- Formed based on Malhotra Committee recommendations, constituted as an autonomous body in 1999, and incorporated as a statutory body in 2000 under the Insurance Regulatory and Development Authority Act, 1999.
- Aimed at facilitating the speedy and orderly growth of the insurance industry, ensuring speedy settlement of genuine claims, and establishing an effective grievance redressal mechanism.
- It operates under the Ministry of Finance.
- It certifies insurance companies, protects the interests of policyholders, and adjudicates disputes.
Significance in Transforming the Insurance Sector:
- Facilitated growth in insurance penetration (4.2% in 2021-22 compared to 2.71% in 2001-02) and insurance density ($91 in 2021-22 compared to $11.5 in 2001-02).
- Enabled the entry of new intermediaries such as corporate agents, bancassurance (selling insurance products through banks), and online sales, leading to increased employment opportunities.
- Accelerated digital transformation through initiatives like e-KYC, paperless policies, and digital payments.
| Initiatives of IRDAI
· Integrated Grievance Management System: Streamlines the grievance redressal process. · Saral Jeevan Bima: Introduces a standard term life insurance product. · Saral Pension: Offers an immediate annuity plan. · Bima Sugam: Provides a one-stop digital platform for insurance-related activities.
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