Section 4 of IRDAI Act : Section 4: Composition Of Authority

Explanation using Example

Imagine a scenario where the Indian government is looking to reconstitute the Insurance Regulatory and Development Authority (IRDA). According to Section 4 of the IRDA Act, 1999, the government is required to appoint a new Chairperson and several members to the Authority. The following example illustrates how this law is put into practice:

The Ministry of Finance announces vacancies for the positions of Chairperson and members of the IRDA. The selection criteria are based on the candidates' expertise in various fields relevant to insurance regulation. After a thorough search and vetting process, the government appoints a new Chairperson who has extensive experience in the life insurance sector. Additionally, three whole-time members are selected for their expertise in general insurance, actuarial science, and finance, respectively, ensuring compliance with the Act's provision that at least one person has knowledge or experience in the specified insurance fields. Two part-time members with backgrounds in law and economics are also appointed, bringing valuable insights from their respective disciplines to the Authority.

Through this process, the composition of the IRDA is aligned with the requirements of Section 4, aiming to create a well-rounded and knowledgeable regulatory body to oversee the insurance industry in India.