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CHAPTER
II
INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY
3.
Establishment and incorporation of Authority
(1) With effect from such date as the Central Government may, by
notification, appoint, there shall be established, for the purposes
of this Act, an Authority to be called "the Insurance Regulatory and
Development Authority".
(2) The Authority shall be a body corporate by the name aforesaid
having perpetual succession and a common seal with power, subject to
the provisions of this Act, to acquire, hold and dispose of
property, both movable and immovable, and to contract and shall, by
the said name, sue or be sued.
(3) The head office of the Authority shall be at such place as the
Central Government may decide from time to time.
(4) The Authority may establish offices at other places in India.
4.
Composition of Authority
The
Authority shall consist of the following members, namely:--
(a)
a Chairperson;
(b)
not more than five whole-time members;
(c)
not more than four part-time members,
to be
appointed by the Central Government from amongst persons of ability,
integrity and standing who have knowledge or experience in life
insurance, general insurance, actuarial science, finance, economics,
law, accountancy, administration or any other discipline which
would, in the opinion of the Central Government, be useful to the
Authority:
PROVIDED
that the Central Government shall, while appointing the Chairperson
and the whole-time members, ensure that at least one person each is
a person having knowledge or experience in life insurance, general
insurance or actuarial science, respectively.
5.
Tenure of office of Chairperson and other members
(1)
The Chairperson and every other whole-time member shall hold office
for a term of five years from the date on which he enters upon his
office and shall be eligible for reappointment:
PROVIDED
that no person shall hold office as a Chairperson after he has
attained the age of sixty-five years:
PROVIDED
FURTHER that no person shall hold office as a whole-time member
after he has attained the age of sixty-two years.
(2)
A part-time member shall hold office for a term not exceeding five
years from the date on which he enters upon his office.
(3)
Notwithstanding anything contained in sub-section (1) or sub-section
(2), a member may--
(a)
relinquish his office by giving in writing to the Central
Government notice of not less than three months; or
(b)
be removed from his office in accordance with the provisions
of section 6.
6.
Removal from office
(1)
The Central Government may remove from office any member who--
(a)
is, or at any time has been, adjudged as an insolvent; or
(b)
has become physically or mentally incapable of acting as a
member; or
(c)
has been convicted of any offence which, in the opinion of
the Central Government, involves moral turpitude; or
(d)
has acquired such financial or other interest as is likely to
affect prejudicially his functions as a member; or
(e)
has so abused his position as to render his continuation in
office detrimental to the public interest.
(2)
No such member shall be removed under clause (d) or clause (e) of
sub-section (1) unless he has been given a reasonable opportunity of
being heard in the matter.
7.
Salary and allowances of Chairperson and members
(1)
The salary and allowances payable to, and other terms and conditions
of service of, the members other than part-time members shall be
such as may be prescribed.
(2)
The part-time members shall receive such allowances as may be
prescribed.
(3)
The salary, allowances and other conditions of service of a member
shall not be varied to his disadvantage after appointment.
8.
Bar on future employment of members
The
Chairperson and the whole-time members shall not, for a period of
two years from the date on which they cease to hold office as such,
except with the previous approval of the Central Government,
accept--
(a)
any employment either under the Central Governmentor under
any State Government; or
(b) any appointment in any company in the insurance sector.
9.
Administrative powers of Chairperson
The
Chairperson shall have the powers of general superintendence and
direction in respect of all administrative matters of the Authority.
10.
Meetings of Authority
(1)
The Authority shall meet at such times and places and shall observe
such rules and procedures in regard to transaction of business at
its meetings (including quorum at such meetings) as may be
determined by the regulations.
(2)
The Chairperson, or if for any reason he is unable to attend a
meeting of the Authority, any other member chosen by the members
present from amongst themselves at the meeting shall preside at the
meeting.
(3)
All questions which come up before any meeting of the Authority
shall be decided by a majority of votes by the members present and
voting, and in the event of an equality of votes, the Chairperson,
or in his absence, the person presiding shall have a second or
casting vote.
(4)
The Authority may make regulations for the transaction of business
at its meetings.
11.
Vacancies, etc., not to invalidate proceedings of Authority
No
act or proceeding of the Authority shall be invalid merely by reason
of--
(a)
any vacancy in, or any defect in the constitution of, the
Authority; or
(b)
any defect in the appointment of a person acting as a member
of the Authority; or
(c)
any irregularity in the procedure of the Authority not
affecting the merits of the case.
12.
Officers and employees of Authority
(1)
The Authority may appoint officers and such other employees as it
considers necessary for the efficient discharge of its functions
under this Act.
(2)
The
terms
and other conditions of service of officers and other
employees of the Authority appointed under sub-section (1) shall be
governed by regulations made under this Act.
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