Life insurance business is a long-term business and to ensure that resources are available to an insurer for meeting the claims, there must be an efficient system of investment of the funds. State how the IRDAI has ensur

Life Insurance is a long term contract and hence it is essential that the Life insurance Company should be able to meet its future obligations and commitments in the form of claims that may arise. In other words it means that the company should have resources available anytime and hence must have a strong Investment policy so that all the premiums received are amicably invested in safe investments so that the company remains solvent and sustainable at the same time. Therefore, in a bid to direct long term savings, the recently amended investment regulations of the Insurance Regulatory Development Authority (IRDA) provide the IRDA (Investment) Regulations, 2000 as amended from time to time for Insurance companies with regards to the investments. As per Regulation 3, a life insurer, for the purposes of these regulations, shall invest and at all times keep invested, the Investment Assets forming part of the Controlled Fund as defined in section 27 of the Act as under: all funds of Life Insurance business and One Year Renewal pure Group Term Assurance Business (OYRGTA), and non-unit reserves of all categories of Unit linked life insurance business, as per regulation 4; all funds of Pension, Annuity and Group Business [as defined under Regulation 2(d) of [IRDA (Actuarial Report and Abstract) Regulations, 2000] as per Regulation 5; the unit reserves portion of all categories of Unit linked funds, as per regulation 6.