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Insurance Regulatory & Development Authority Insurance Regulatory & Development Authority is regulatory and development autho rity

under Government of India in order to protect the interests of the policyho lders and to regulate, promote and ensure orderly growth of the insurance indust ry. It is basically a ten members' team comprising of a Chairman, five full time members and four part-time members, all appointed by Government of India. This organization came into being in 1999 after the bill of IRDA was passed in the In dian parliament. Powers and Functions of IRDA It issues the applicants in insurance arena, a certificate of registration as we ll as renewal, modification, withdrawal, suspension or cancellation of such regi strations. It protects the interests of the policy holders in any insurance company in the matters related to the assignment of policy, nomination by policy holders, insur able interest, and resolution of insurance claim, submission value of policy and other terms and proposals in the contract. It also specifies obligatory credentials, code of conduct and practical instruct ions for mediator as well as the insurance company. Apart from this, it also def ines the code of conduct for the surveyors and loss assessors involved with the insurance business. One of the major functions of IRDA includes endorsing competence in the insuranc e business. Apart from this, upholding and regulating professional organizations in insurance and re-insurance business is also a major duty of IRDA. IRDA is also entitled to for asking information, undertaking inspection and inve stigating the audit of the insurers, mediators, insurance intermediaries and oth er organizations related to the insurance sector. It is also concerned with the regulation of the rates, profits, provisions and c onditions that may be offered by insurers in respect of general insurance busine ss if it is not controlled or regulated by the Tariff Advisory Committee. It is also entitled to supervise the functioning of the Tariff Advisory Committe e. IRDA specifies the terms and pattern in which books of accounts are to be mainta ined and statement of accounts shall be provided by insurers and other insurance mediators. It also regulates investment of funds by insurance companies as well as the main tenance of margin of solvency. It is also empowered to be involved in the arbitration of disagreements between insurers and intermediaries or insurance intermediaries. It is meant to specify the proportion of premium income of the insurer to financ e policies. IRDA also specifies the share of life insurance business and general insurance b usiness to be accepted by the insurer in the rural or social sector. Impact Of IRDA On Indian Insurance Sector The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10 years of its establishment the insurance sector has seen tremendous growth. When IRDA came into being; only players in the insurance industry were L ife Insurance Corporation of India (LIC) and General Insurance Corporation of In dia (GIC), however in last decade 23 new players have emerged in the filed of in surance. The IRDA also successfully deals with any discrepancy in the insurance sector.