What need for IrDA?

The Insurance Regulatory and Development Authority (IRDA) was formed by an act of Indian Parliament known as IRDA Act 1999. The purpose of setting up the agency, as stated in the Parliament is

1. To Protect the interests of Insurance Policy holders

2. To Regulate, Promote and Ensure orderly growth of the Insurance Industry

The Act was amended in the year 2002 to incorporate some additional regulations to further protect the interests of the Indian Citizens.