Key Concepts & Self-Assessment15 Key Facts
Review key Insurance Sector & IRDAI Regulations exam facts and rate your mastery to track revision.
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#1
The Insurance Regulatory and Development Authority of India (IRDAI) was established under the IRDA Act, 1999 on recommendations of the R.N. Malhotra Committee.
#2
IRDAI was initially constituted in New Delhi before relocating its permanent statutory headquarters to Hyderabad, Telangana in 2001.
#3
Life Insurance Corporation of India (LIC) was established on September 1, 1956 under the LIC Act, nationalizing 245 Indian and foreign life insurers.
#4
The General Insurance Business (Nationalisation) Act, 1972 (GIBNA) nationalized non-life insurance business in India with effect from January 1, 1973.
#5
The four public sector general insurance companies formed under GIC were New India Assurance, National Insurance, Oriental Insurance, and United India Insurance.
#6
General Insurance Corporation of India (GIC Re) was converted into the sole national Indian reinsurer in November 2000 under IRDAI guidelines.
#7
The Insurance (Amendment) Act, 2021 enhanced the Foreign Direct Investment (FDI) cap in Indian insurance companies from 49% to 74% under the automatic route.
#8
Under IRDAI prudential regulations, all insurance companies operating in India must maintain a minimum Solvency Ratio of 150% (1.5x).
#9
Insurance penetration in India is measured as the ratio of insurance premium to Gross Domestic Product (GDP) in percentage terms.
#10
Insurance density is calculated as the ratio of total premium collected to the total population, expressed in US dollars or Indian rupees.
#11
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) offers renewable one-year life insurance coverage of ₹2 lakh for individuals aged 18 to 50 years.
#12
Pradhan Mantri Suraksha Bima Yojana (PMSBY) provides accident and disability coverage of up to ₹2 lakh for individuals aged 18 to 70 years.
#13
Bima Sugam is an integrated electronic marketplace designed by IRDAI as an open digital public infrastructure for insurance buying and claims settlement.
#14
Bima Vistar is an all-in-one bundled micro-insurance product offering life, health, personal accident, and property cover for rural and semi-urban citizens.
#15
Bima Vaahak is a women-centric dedicated distribution channel designed by IRDAI to enhance reach and insurance penetration in every gram panchayat.
Subject Specialist Commentary
Analytical perspective & practical exam advice from the Master10 academic board
The insurance sector pools risks against unexpected life events, accidents, and property losses. Regulated by IRDAI, established following the 1994 Malhotra Committee report, the market includes state giants like LIC alongside private insurers. To safeguard policyholders, the regulator enforces strict solvency margins and expands rural access through electronic marketplaces like Bima Sugam and bundled micro-insurance products like Bima Vistar.
In UPSC, SSC, and banking exams, questions often target regulatory metrics and social insurance schemes. Do not confuse insurance penetration, which is premium as a share of GDP, with insurance density, which is premium per person. In prelims tests, remember that the foreign investment cap was raised to 74 percent in 2021, and insurers must maintain a 150 percent solvency ratio. Note the entry ages: 18 to 50 for PMJJBY, and 18 to 70 for PMSBY.
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