Why this matters now
IRDAI is tested for: Malhotra Committee 1993 recommendation; IRDA Act 1999 + IRDAI rename 2014; Hyderabad HQ; composition (Chair + 5 whole-time + 4 part-time = 10 members + Chair); functions (register insurers, protect policyholders, regulate intermediaries, promote insurance penetration); India’s insurance penetration ~4% (GDP) vs world avg 7%; the Insurance Act amendments 2021 raising FDI to 74%; Bima Sugam + Bima Vistaar + Bima Vahak initiatives (Insurance for All by 2047 vision).
History
- 1818: Oriental Life Insurance Company — India’s first life insurance company (Bipin Behari Dasgupta), Calcutta.
- 1850: Triton Insurance Company — India’s first general insurance company.
- 1912 + 1928: Indian Life Assurance Companies Act + Indian Insurance Companies Act.
- 1956: Life Insurance Corporation (LIC) Act — nationalised 245 private insurers into LIC.
- 1972: General Insurance Business (Nationalisation) Act — created GIC + 4 subsidiaries.
- 1993: Malhotra Committee recommended opening insurance sector + creating regulator.
- 1999: IRDA Act passed.
- 2000: IRDA registered first private insurers.
- 2014: Renamed IRDAI (Insurance Regulatory and Development Authority of India). FDI raised 26% → 49%.
- 2021: FDI raised to 74% via Insurance (Amendment) Act 2021.
- 2022: Bima Sugam + Bima Vistaar announced.
Composition + Functions
IRDAI structure: Chairperson + 5 whole-time members + 4 part-time members + Chair = 10 total. Appointed by Central Government. Term: 5 years; not exceeding age 65 (Chair) / 62 (members).
Functions (Section 14):
- Register and renew insurance companies.
- Protect policyholders’ interests.
- Promote insurance penetration + literacy.
- Regulate intermediaries (agents, brokers, surveyors, TPAs).
- Specify code of conduct for surveyors + adjustors.
- Adjudicate disputes between insurers + intermediaries.
- Levy fees + charges.
Recent: Insurance for All 2047
IRDAI’s “Insurance for All by 2047” vision (announced 2022). Initiatives:
- Bima Sugam: single online portal for buying + servicing + claim of all insurance products. Launch FY25.
- Bima Vistaar: bundled product covering life + health + property + accident at affordable premium for Bharat (rural).
- Bima Vahak: dedicated distribution channel (woman-centric) for last-mile reach.
- Composite licence (one company offering life+general+health) on legislative anvil 2024.
India’s insurance penetration 2024-25 was ~4.0% of GDP (life 2.9% + non-life 1.1%) — below world avg 7%. Insurance density (per capita premium) ~$90 vs world $853.
UPSC angle
Know IRDAI — Insurance Regulatory and Development Authority of India; STATUTORY body IRDA ACT 1999, renamed IRDAI 2014; HQ HYDERABAD; HISTORY: Oriental Life 1818 (Bipin Behari Dasgupta Calcutta) + Triton 1850 first general; LIC ACT 1956 nationalised 245 private insurers, GIC ACT 1972 + 4 subsidiaries; MALHOTRA COMMITTEE 1993 recommended opening + regulator; IRDA Act 1999; first private insurers 2000; FDI 26%→49% 2014→74% Insurance Amendment Act 2021; COMPOSITION Chair + 5 whole-time + 4 part-time = 10 members; appointed Central Govt; TERM 5 yrs, 65 Chair / 62 members; SEC 14 FUNCTIONS: register insurers + protect policyholders + promote penetration + regulate intermediaries (agents/brokers/surveyors/TPA) + code of conduct surveyors + adjudicate disputes + levy fees; CHAIRPERSON DEBASISH PANDA since 14 March 2022; INSURANCE FOR ALL BY 2047 vision (announced 2022); BIMA SUGAM single online portal launch FY25 + BIMA VISTAAR bundled life+health+property+accident + BIMA VAHAK woman-centric distribution; COMPOSITE LICENCE 2024 legislative; India insurance penetration ~4.0% of GDP (life 2.9% + non-life 1.1%) vs world 7%; density ~$90 vs world $853.
Frequently asked questions
When was IRDAI established?
As IRDA in 1999 under the IRDA Act 1999. Renamed IRDAI in 2014. Headquartered at Hyderabad.
Who is the current IRDAI Chairperson?
Debasish Panda — took charge on 14 March 2022 for a 3-year term.
What is the FDI cap in insurance?
74% (raised from 49% by the Insurance (Amendment) Act 2021).
What is Bima Sugam?
A single online portal for buying, servicing and claiming all insurance products — launching FY25 as part of IRDAI’s “Insurance for All by 2047” vision.