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IRDA is playing a vital role in governing the Insurance sector. The main motive of the Insurance companies is upholding the resources and to invest the same. Companies dealing in Insurance sector are looked upon a lot of expectations for meeting the complex economic patterns. However, Reporting is the basic requirement expected from the Insurance companies by the authorities. IRDA Compliances for Insurance companies are necessary to maintain transparency and accountability. So, they must share the information to ensure better governance of the organization.
For better working of the insurance company, it is covered by the various Acts, mainly-
Additionally, to ensure its smooth working and for ensuring transparency and accountability numerous other policies are also imposed on the insurance companies while dealing with complicated business.
IRDA – (Insurance Regulatory and Development Act) is an apex statutory body which controls and standardize the working of Insurance Companies in India. To protect the interest of the policyholder, IRDA is playing a major role in regulating, promoting and for orderly growth of the Insurance Sector. Further, IRDA provides-
Additionally, The Return shall be signed by
However, If Insurer carries business outside India then said 6 months as mentioned above will be extended by 3 months.
Insurer have to provide to the Authority 4 copies (duly certified) in the English language of every document (i.e. Balance sheet, Account, Report and statement) furnished to the public authority attached with the statement examined by an auditor which reflects the assets held by insurer in India as on the time of the balance-sheet so furnished within the prescribed time.
In India, all the Companies dealing in Insurance business shall be incorporated under the Companies Act, 2013 as a Public Company. Being a Public Company, the insurance company is required to comply with the provisions of Companies Act 2013. Various provisions are required to comply with as per the provisions of the Companies Act i.e.
Compliance with the Corporate Governance Guidelines issued by the IRDA is mandatory for Insurance Company and shall constitute the committees as prescribed under the guidelines.
The provisions of FEMA are designed and imposed for those insurance companies that possess foreign investments or have foreign promoters. For the insurance companie, it is mandatory to comply with the FEMA Compliances and to produce an annual report by following the provisions prescribed by the RBI and within the specified time period. For smoother working of the organization, these companies must abide by the directions of the guidelines.
IRDA clearly explains the code of conduct for all insurance companies.
For the smooth working and for maintaining the transparency in the business compliance with provisions of IRDA is necessary. To maintain the equity among the customers, IRDA regulates the rates and terms and conditions offered by the insurance companies to the consumer. IRDA compliances are of utmost importance for Insurance companies. IRDA has set standards and proper vigilance mechanism to check the fraudulent practices.
Read our article: A Review on Insurance Broker Compliance under IRDAI