Much like the financial services offered in India, Insurance sector in India has been a victim of incompetence. The products are not very flexible, the insurance sector hasn’t been able to penetrate smaller cities and there has been high propensity of scams. Under these circumstances, Insurance Regulatory and Development Authority, IRDAI, plays a great role in regulating the functioning of the insurance sector.
Call for IRDAI
Insurance is an agreement wherean insurance company undertakes to provide compensation for stated loss, damage, illness or death in return for payment of a specified amount (premium).
In the past, the insurers have failed to keep up their promises and the customers were at a big loss and had to adhere to some of the officer’s naggings too. This gave the need to develop a regulatory body to keep an eye on companies and policyholders too. This regulatory body, constituted by Government of …