The Insurance Regulatory and Development Authority of India (IRDAI) is set to introduce new measures, including the introduction of 100% cashless claim settlement in health coverage. IRDAI, a statutory body formed under the IRDAI Act 1999, is responsible for supervising and developing India’s insurance sector. It regulates and licenses both life and general insurance companies in the public and private sectors, as well as standalone health insurance providers. The 10-member body, appointed by the Indian government, safeguards policyholders’ interests by overseeing insurance business operations, approving product terms, regulating investments, and ensuring coverage in rural and vulnerable areas.
Facts/Terms for UPSC Prelims
- IRDAI (Insurance Regulatory and Development Authority of India): IRDAI is a statutory body overseeing India’s insurance sector, regulating insurance and reinsurance companies, intermediaries, and ensuring policyholder protection.
- Standalone Health Insurance Companies: These companies exclusively provide health insurance policies, offering coverage for medical expenses and healthcare-related needs.
- Margin of Solvency: A financial requirement imposed by IRDAI, ensuring that insurance companies maintain sufficient funds to meet their obligations and cover potential losses.
- Third-Party Administrators (TPAs): TPAs are intermediaries appointed by insurance companies to manage and administer health insurance claims, facilitating communication between policyholders, healthcare providers, and insurers.
