A business incorporated in India has to fulfill a specific set of compliance, filings, and returns as prescribed under the provisions of various corporate and tax laws. In simple words, compliance means following rules and orders applicable to the entity. Every entity is governed under law and order and that entity needs to follow the rule and regulations prescribed by it. Legal and regulatory enforcement must be handled as an integral part of every corporate strategy. The executive board and management must consider the scope and consequences of the company's relevant laws and regulations. They need to set up a compliance management system as a supporting risk management program, as it significantly reduces enforcement risk.
Annual compliance means a specific set of compliance which a company has to fulfill post-incorporation in order to commence and continue its operations. Non-compliance with such compliance may lead to strike off of the company and disqualification of the directors of such a Company. Annual compliance includes various returns to be filed with the IRDA, Company compliance, FEMA Compliances, etc of an insurance company
A regulatory authority established for governing the insurance sector is known as Insurance regulatory and development authority. It is a statutory body which plays a vital role in governing the insurance sector, its main motive is to frame rule and regulation for the insurance company and to look after the working of the insurance company. Insurance firms' main motive is to uphold the resources and invest the same. Companies in the insurance industry are expected to follow the complex economic patterns. Reporting, however, is the basic obligation that the authorities demand from companies. To ensure transparency and accountability, IRDA Compliance for insurance companies is required. So, to ensure the organization's better governance, they must share their details.
IRDA plays a major role in regulating, promoting, and orderly growth of the insurance sector. IRDA provides
Registration to an insurance company
Modification, renewal, cancellation, and suspension of registration certificate
Adjudicate dispute between intermediaries and insurers and protect rights of the policyholder
Settlement of claims and to curb fraudulent activity
Promote insurance sector
Draft rule and regulation
An insurance company is covered under the various act:
Insurance act 1938
Companies Act 2013