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Risk Management in Banking and Insurance · Insurance Intermediaries

Insurance Advisory Committee under Section 25 of the IRDA Act

Updated 11 October 2026 · Fact-checked

The Insurance Advisory Committee is a body the Authority (IRDAI) may set up by notification under Section 25 of the IRDA Act, 1999. It has up to twenty-five members plus ex officio members. Its main object is to advise the Authority on making regulations under Section 26. It may advise on other prescribed matters too.

Understand Insurance Advisory Committee under Section 25

The Insurance Regulatory and Development Authority Act, 1999 makes IRDAI the regulator of insurance. Before it frames regulations, it needs views from the people the regulations will affect. Section 25 provides a formal channel for this: the Insurance Advisory Committee.

The Committee is not automatic. The Authority may, by notification, establish it with effect from a date the Authority specifies. So the power is discretionary, and the notification is the legal act that brings the Committee into existence.

Composition is broad. The Committee has not more than twenty-five members, excluding ex officio members. They represent commerce, industry, transport, agriculture, consumer fora, surveyors, agents, intermediaries, organisations engaged in safety and loss prevention, research bodies and employees' association in the insurance sector. The Chairperson and the members of the Authority are the ex officio Chairperson and ex officio members.

The role is advisory. The objects are to advise the Authority on matters relating to the making of regulations under Section 26. Without affecting that, the Committee may advise on such other matters as may be prescribed. Advice does not bind the Authority.

Do not confuse this with other bodies. The Advisory Committee under Section 101B of the Insurance Act, 1938 has not more than five persons and exists for the purposes of Section 101A. The Executive Committee of the General Insurance Council under Section 64L is a different body with different functions.

Key rules to remember

Establishment
Authority may, by notification, establish the Committee from a specified date
Discretionary power ("may"). Notification is required.
Size
Members ≤ 25, excluding ex officio members
Upper limit only. Ex officio members are outside the count.
Representation
Commerce, industry, transport, agriculture, consumer fora, surveyors, agents, intermediaries, safety and loss prevention organisations, research bodies, employees' association
Interests represented in the insurance sector.
Ex officio members
Chairperson and members of the Authority = ex officio Chairperson and members of the Committee
The Authority's head chairs the Committee.
Objects
Advise the Authority on making regulations under Section 26; plus other prescribed matters
Advisory only. The other matters are those prescribed.

How to solve Insurance Advisory Committee under Section 25 questions

Use this method for any question on the Insurance Advisory Committee, whether MCQ or descriptive.

  1. 1Identify the Act. Section 25 of the IRDA Act, 1999 is the Insurance Advisory Committee. Do not mix it with Section 101B of the Insurance Act, 1938 or Section 64L.
  2. 2State how it comes into being: the Authority may establish it by notification, from a specified date.
  3. 3State composition: not more than twenty-five members excluding ex officio members, drawn from the listed interest groups.
  4. 4State the ex officio position: the Authority's Chairperson and members.
  5. 5State the objects: advise on making regulations under Section 26, and on other prescribed matters.
  6. 6For a case question, apply the rule to the facts: count members excluding ex officio, check the interest group, and check whether the matter is regulation-making.
  7. 7End with a clear conclusion and note that the advice is advisory, not binding.

Quickest way: Four-point recall for Section 25

When to use it: For MCQs where you have under a minute per question.

  1. Who sets it up? The Authority, by notification.
  2. How big? Up to 25, not counting ex officio members.
  3. Who chairs? The Authority's Chairperson, ex officio.
  4. What for? Advice on regulations under Section 26, plus other prescribed matters.

Common mistakes in Insurance Advisory Committee under Section 25

  • Saying the Central Government establishes the Committee.

    Many insurance bodies are formed by the Government, so students assume the same here.

    Fix: Under Section 25 it is the Authority that establishes it, by notification.

  • Writing that the Committee has exactly twenty-five members.

    Students remember the number but not the limit.

    Fix: Say "not more than twenty-five, excluding ex officio members".

  • Counting the Authority's members within the twenty-five.

    The ex officio wording is skipped.

    Fix: The twenty-five limit excludes ex officio members.

  • Mixing it with the Section 101B Advisory Committee of five persons.

    Both are called Advisory Committee.

    Fix: Section 25 IRDA Act: up to 25, advises on regulations. Section 101B Insurance Act: up to 5, for Section 101A.

  • Saying the Committee makes regulations or its advice binds the Authority.

    Students overstate the role.

    Fix: It only advises. The Authority makes the regulations.

Worked examples

Example 1

The Authority notifies an Insurance Advisory Committee with 22 appointed members from the listed interest groups. The Authority's Chairperson and 8 other members of the Authority also sit on it. A member objects that the total of 31 exceeds the legal limit. Is the objection valid?

Show the solution
  1. Section 25 limits the Committee to not more than twenty-five members, excluding ex officio members.
  2. The Chairperson and members of the Authority are ex officio members, so they are outside the count.
  3. Count only appointed members: 22.
  4. 22 ≤ 25, so the limit is met.

Answer: The objection is not valid. Only the 22 appointed members count towards the limit of twenty-five; the Authority's Chairperson and members sit ex officio and are excluded.

Example 2

Explain the purpose of the Insurance Advisory Committee under Section 25 of the IRDA Act, 1999, and state whether it can advise on matters other than regulations.

Show the solution
  1. The Authority may establish the Committee by notification from a specified date.
  2. Its objects are to advise the Authority on matters relating to making regulations under Section 26.
  3. Without prejudice to this, it may advise on such other matters as may be prescribed.
  4. The Committee represents varied interests, such as consumer fora, agents, intermediaries and surveyors, so the Authority hears these views before framing regulations.
  5. The role is advisory; the Authority makes the regulations.

Answer: The Committee advises the Authority on making regulations under Section 26. It may also advise on other matters as may be prescribed, so its scope is not limited to regulations, but only prescribed matters beyond that.

Exam tips

  • Expect MCQs on the number of members. Look for "not more than twenty-five, excluding ex officio members".
  • Watch the verbs: the Authority "may" establish it, and the Committee "advises". Options saying "shall" or "binds" are traps.
  • Be ready to separate the Section 25 IRDA Act committee from the Section 101B committee and the Section 64L Executive Committee.
  • In a descriptive answer, structure it as establishment, composition, ex officio members, objects, then a one-line conclusion.

Practice questions from Insurance Intermediaries

Insurance Advisory Committee under Section 25 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Insurance Advisory Committee under Section 25: frequently asked questions

Who establishes the Insurance Advisory Committee under Section 25?

The Authority, which is IRDAI, may establish it by notification. It takes effect from the date the Authority specifies in that notification.

How many members can the Insurance Advisory Committee have?

Not more than twenty-five, excluding ex officio members. The Chairperson and members of the Authority are the ex officio Chairperson and members.

What does the Insurance Advisory Committee do?

It advises the Authority on matters relating to the making of regulations under Section 26. It may also advise on other matters as may be prescribed.

Is the Section 25 committee the same as the Advisory Committee in Section 101B of the Insurance Act?

No. Section 101B of the Insurance Act, 1938 provides for a committee of not more than five persons with special knowledge of insurance, for the purposes of Section 101A. Section 25 of the IRDA Act is a separate, larger body that advises on regulations.