UGC NET COMMERCE June 2019 Q67
0. Which of the following is the predecessor of the IRDA Act, 1999?
- Option : A
- Explanation : The Indian insurance industry is governed by Insurance Act, 1938, General Insurance Business Act, 1 972, Life Insurance Corporation Act, 1 956 and Insurance Regulatory Development Authority Act, 1999. General Insurance Industry is guided by all the above acts except the Life Insurance Corporation Act, 1956, which is specifically meant for Life business. Indian insurance industry has recently been opened up for private companies, both domestic and foreign. The opening of the insurance sector has been facilitated through IRDA.
The Government of India realized the necessities of setting-up Insurance Regulatory and Development Authority (IRDA) in 1999. The IRDA was set-up to provide for the establishment of an Authority, for protecting the interests of holders of insurance policies, to regulate, promote and insurer orderly growth of the insurance industry and for matters connected therewith or incidental thereto. With the birth of IRDA, the Government amended the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the General Insurance Business (Nationalization) Act, 1972 for the sake of proper control at apex level.
Insurance Development and Regulatory Authority (IRDA) exercise the supervisory control or insurance companies and these powers flow from Insurance Act, 1983 as well as from IRDA Act, 1999. IRDA Act, 1999 states: “Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of insurance business and reinsurance business.”
Regulatory and supervisory powers of the authority are wide and pervasive.
