Which committee was constituted by IRDAI to review the regulations governing Insurance Marketing Firms (IMF)?

Introduction / Context:
This question is about regulatory reforms in the insurance distribution sector in India. Insurance Marketing Firms (IMF) are entities created to widen the reach of insurance services. The Insurance Regulatory and Development Authority of India (IRDAI) set up a committee to review and recommend changes in the regulations governing IMFs. Knowing the name of this committee is a part of regulatory and financial awareness for exams.

Given Data / Assumptions:

• The regulator is IRDAI.
• The subject is reviewing regulations for Insurance Marketing Firms (IMF).
• The question asks which committee was formed for this purpose.
• Options include Suresh Mathur Committee, Balwant Rai Mehta Committee, Veerappa Moily Committee and Sachar Committee.

Concept / Approach:
IRDAI constituted a committee under Suresh Mathur to review regulations relating to Insurance Marketing Firms and suggest changes to improve penetration and flexibility. The other committees listed are associated with different subjects, such as Panchayati raj or socio economic studies, and have no link with IMFs. By matching each committee name to its known area, we can quickly identify the correct answer.

Step-by-Step Solution:
Step 1: Recall that IRDAI set up a committee under the chairmanship of Suresh Mathur to review the regulations governing Insurance Marketing Firms.Step 2: This committee made recommendations such as changes in net worth requirements and expansion of the area of operation for IMFs.Step 3: Balwant Rai Mehta Committee is historically known for its recommendations on Panchayati raj institutions, not insurance marketing.Step 4: Veerappa Moily Committee has dealt with various administrative and reform issues but is not connected with IMF regulations.Step 5: Sachar Committee is known for its report on the social, economic and educational status of the Muslim community in India.Step 6: Therefore, only Suresh Mathur Committee fits the context described in the question.

Verification / Alternative check:
Regulatory news summaries and exam oriented current affairs notes clearly mention that IRDAI constituted a Suresh Mathur headed committee to review IMF regulations. These sources also highlight the committee's recommendations for making IMFs more effective in insurance distribution. No such references associate IMF regulation review with the other committees listed in the options, confirming that Suresh Mathur Committee is correct.

Why Other Options Are Wrong:
Balwant Rai Mehta Committee: Focused on democratic decentralisation and Panchayati raj, unrelated to insurance regulation.

Veerappa Moily Committee: Worked on various reform topics but not specifically on Insurance Marketing Firms.

Sachar Committee: Focused on minority community socio economic status, not on financial distribution mechanisms such as IMFs.

These committees do not match the subject of Insurance Marketing Firms, so they are incorrect.

Common Pitfalls:
A common mistake is to recognise a famous committee name and choose it without checking whether its mandate matches the question. For example, Sachar Committee is widely known, but that does not make it correct in every context. To avoid this, always connect the committee to its topic: Suresh Mathur – IMFs and insurance; Balwant Rai Mehta – Panchayati raj; Sachar – socio economic status of Muslims.

Final Answer:
The committee formed by IRDAI to review regulations governing Insurance Marketing Firms was the Suresh Mathur Committee.