IRDAI
The Insurance Regulatory and Development Authority of India (IRDAI) is the statutory body that regulates and licenses insurance companies in India, established under the IRDAI Act, 1999.
Understanding IRDAI
IRDAI is headquartered in Hyderabad and is funded by a 1% cess on premiums collected by Indian insurers. It approves every new insurance product before launch, prescribes the minimum solvency ratio insurers must maintain (currently 150%), and publishes the annual claim settlement ratio data that is publicly available on its website.
For policyholders, IRDAI runs the Bima Bharosa portal — a free grievance redressal mechanism where complaints against insurers can be filed and tracked.
Why it matters
Always verify that an insurance product is IRDAI-approved before buying. Unregulated 'investment-cum-insurance' offers from informal channels are illegal and offer no recourse if the issuer disappears. The claim settlement ratio published by IRDAI annually is also a strong indicator of insurer reliability.
Example
If your health insurance claim is rejected unfairly and the insurer's grievance team does not resolve it within 30 days, you can escalate to the IRDAI Insurance Ombudsman through the Bima Bharosa portal. The Ombudsman can pass a binding award up to ₹50 lakh.
If your health insurance claim is rejected unfairly and the insurer's grievance team does not resolve it within 30 days, you can escalate to the IRDAI Insurance Ombudsman through the Bima Bharosa portal. The Ombudsman can pass a binding award up to ₹50 lakh.