Why in news?
The Insurance Regulatory and Development Authority of India (IRDAI) has permitted insurers to grant a moratorium of three months on repayment of term loans sanctioned by them.
- Considering the cash flow problems faced by the borrowers and in line with the recent directions of the RBI on moratorium on term loans, insurers are permitted to grant a moratorium of three months towards payment of instalments falling due between March 1 and May 31
- The rescheduling of payments, including interest, will not qualify as a default for the purpose of reporting of non-performing assets (NPAs).
- The Insurance Regulatory and Development Authority of India or the IRDAI is the apex body responsible for regulating and developing the insurance industry in India.
- It is an autonomous body. It was established by an act of Parliament known as the Insurance Regulatory and Development Authority Act, 1999. Hence, it is a statutory body.
- The IRDAI is headquartered in Hyderabad in Telangana. Prior to 2001, it was headquartered in New Delhi.
Functions of IRDA
The functions of the IRDA are listed below:
- Its primary purpose is to protect the rights of the policyholders in India.
- It gives the registration certificate to insurance companies in the country.
- It also engages in the renewal, modification, cancellation, etc. of this registration.
- It also creates regulations to protect policyholders’ interests in India.
Composition of IRDA
The Section 4 of the Insurance Regulatory Development Authority (IRDA) Act, 1999 specifies the composition of authority which consists of 10 member team appointed by the government of India which includes.
- One chairman
- Five whole time members
- Four part time members