The Insurance Regulatory and Development Authority of India (IRDAI) has approved a series of regulatory reforms aimed at strengthening policyholder protection and accelerating the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The decisions were taken during the 137th Authority Meeting held on 28 July 2026 at IRDAI's headquarters in Hyderabad and announced through a press release on 29 July 2026.
What Did IRDAI Approve at the 137th Authority Meeting?
The 137th Authority Meeting of the Insurance Regulatory and Development Authority of India (IRDAI) was held on 28 July 2026 at its headquarters in Hyderabad. During the meeting, the Authority approved a series of regulatory, supervisory and developmental reforms to implement provisions of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act). The approvals include:
IRDAI (Policyholders' Education and Protection Fund) Regulations, 2026.
Amendments to regulations governing insurance intermediaries, including mandatory tagging of authorised salespersons and perpetual registration.
IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026.
IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026.
IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026.
Approval of a Certificate of Registration for a new general insurance company, making it the fourth company to get certification from IRDAI this year.
Review of progress on capital reforms following the SBSR Act, with two insurers (one life insurer and one general insurer) already increasing foreign shareholding beyond the earlier threshold of 74%.
IRDAI Operationalises Policyholders' Education and Protection Fund
The Authority approved the IRDAI (Policyholders' Education and Protection Fund) Regulations, 2026, bringing into operation the Policyholders' Education and Protection Fund (PEPF) established under Section 16A of the IRDA Act, 1999, as introduced through the SBSR Act.
According to IRDAI, the PEPF will:
Promote insurance awareness and financial literacy programmes.
Strengthen grievance redressal mechanisms for policyholders.
Support the use of technology to improve policyholder services.
Facilitate the tracing and recovery of unclaimed insurance amounts.
Fund other initiatives aimed at protecting and empowering policyholders.
Insurance Policies to Carry Authorised Salesperson Details
IRDAI has approved amendments to the regulations governing insurance intermediaries, making it mandatory to tag the authorised salesperson with every insurance proposal, policy and certificate of insurance.
The regulator said the requirement will strengthen accountability and traceability throughout the insurance distribution process. By linking every policy to the authorised salesperson responsible for the sale, IRDAI aims to improve regulatory oversight and increase transparency for policyholders. The amendments also align the intermediary framework with the provisions introduced under the SBSR Act, 2025.
IRDAI Introduces Perpetual Registration for Insurance Intermediaries
IRDAI has also approved amendments to the regulations governing insurance intermediaries, replacing the existing periodic registration renewal system with perpetual registration supported by an annual fee regime.
The amendments:
Replace periodic registration renewals with perpetual registration supported by an annual fee.
Align the regulatory framework with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 and the Foreign Investment Rules.
Introduce enhanced disclosure, governance and accountability requirements.
Reduce the compliance burden on insurance intermediaries, third-party administrators and surveyors.
IRDAI Approves Changes to Capital, Investment and Corporate Governance Norms
The Authority has approved the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second Amendment) Regulations, 2026 and the IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026.
The approved amendments:
Liberalise investment norms for insurers.
Introduce a facilitative framework for capital infusion and corporate restructuring.
Streamline provisions governing the transfer of shares and amalgamation of insurers.
Strengthen actuarial oversight and financial governance.
Improve ease of doing business, facilitate capital formation and enhance insurers' financial resilience while protecting policyholder interests.
New Framework Approved for Imposition of Penalties
IRDAI has approved the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026, establishing a structured framework for enforcement under the Insurance Act, 1938 and the IRDA Act, 1999.
The regulations:
Prescribe a uniform process for initiating enforcement proceedings.
Lay down procedures for issuing show-cause notices.
Provide for the passing of reasoned orders.
Promote consistency, fairness and transparency in regulatory actions.
Enhance regulatory certainty and strengthen confidence in the insurance sector.
IRDAI Reaffirms Commitment to SBSR Act Implementation
In its press release, IRDAI reiterated its commitment to implementing the remaining reforms under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The regulator said the reforms are intended to strengthen policyholder protection, encourage innovation, attract long-term investment and improve ease of doing business through a balanced regulatory framework.
Source: https://irdai.gov.in/document-detail?documentId=9690247
Frequently Asked Questions
When will the new IRDAI regulations come into effect?
The regulations were approved at IRDAI's 137th Authority Meeting on 28 July 2026. However, each regulation will come into effect from the date specified in its respective notification. The implementation timeline may therefore vary depending on the regulation.
Do existing insurance policyholders need to take any action?
No. IRDAI has not announced any immediate action for existing policyholders. The approved reforms mainly introduce changes to the regulatory framework governing insurers, intermediaries and policyholder protection mechanisms.
How will mandatory salesperson tagging work?
Under the approved amendments, every insurance proposal, policy and certificate of insurance must include the details of the authorised salesperson involved in the sale. According to IRDAI, this measure is intended to improve accountability, traceability and transparency in the insurance distribution process.
Does the Policyholders' Education & Protection Fund replace the Ombudsman?
No. The Policyholders' Education and Protection Fund (PEPF) does not replace the Insurance Ombudsman. While the Ombudsman continues to resolve insurance disputes, the PEPF has been created to support insurance awareness, policyholder education, grievance redressal initiatives and the recovery of unclaimed insurance amounts.
Which entities do the new IRDAI regulations apply to?
The approved regulations apply to different regulated entities depending on their scope. These include insurers, insurance intermediaries, third-party administrators, surveyors and other entities governed by the respective IRDAI regulations.
Why has IRDAI introduced these reforms?
According to IRDAI, the reforms are part of the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. They are intended to strengthen policyholder protection, improve regulatory oversight, facilitate capital formation and support the long-term growth of India's insurance sector.
