IRDAI said the proposed amendments comes in backdrop of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 that among others permitted 100% FDI. File
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Insurance regulator IRDAI is proposing amendments to registration regulations, for insurance companies, with the aim of enhancing ease of doing business, simplification of regulatory processes, reduction of compliance costs, enhancement of operational clarity and facilitation of capital infusion.Also read | IRDAI approves India AS framework for insurers from April 1Placing a consultation paper, in public domain, IRDAI said the proposed amendments to the Insurance Regulatory and Development Authority of India (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024, comes in backdrop of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 that among others permitted 100% foreign direct investment (FDI).The proposed amendments seek to align the existing regulatory framework with the revised provisions of the Insurance Act 1938 and facilitate a transparent, growth-oriented, and globally aligned insurance ecosystem while ensuring continued protection of policyholder interests, IRDAI said on Monday (June 15, 2026).The changes relate to eligibility criteria for Indian as well as foreign promoters; foreign investment safeguards, special purpose vehicles (SPVs), approval for transfer of shares, amalgamation of insurance companies with non-insurance companies, processing fees for applications, name of insurance companies; and forms and application procedures.On amendments proposed in definitions relating to foreign promoter, Indian promoter and SPV, the regulator said the proposed amendments seek to ensure consistency, remove interpretational ambiguities, strengthen regulatory oversight and put in place safeguard mechanisms in view of increase in limit of FDI.It said the existing framework permits SPVs to act as promoter, while the proposed amendment requires applicants to demonstrate the necessity of SPV structures while extending SPV recognition to eligible foreign incorporated entities from Financial Action Task Force (FATF) compliant jurisdictions.With the SBSR Act enabling amalgamation of insurers with non-insurance companies, a regulatory framework, as part of the amendments, is proposed covering eligible non-insurance entities, conditions for amalgamation, manner of payment of consideration, post-amalgamation safeguards and measures for protection of policyholder interests.Rationalisation of the fees payable by insurers is another change proposed by IRDAI, including processing fee for amalgamation applications from existing ₹50 lakh-₹5 crore to a fixed amount of ₹10 lakh; processing fee for transfer of shares application from ₹50 lakh to ₹10 lakh.With the SBSR Act introducing stipulations with regard to the name of the insurer — the name of the entity should either have insurance, assurance or reinsurance — IRDAI as part of the proposed amendments is proposing to introduce a new Regulation 56A relating to name of insurers. It also provides transitional timeline for existing insurers and prior approval requirement for change in name of insurers. Published - June 15, 2026 10:00 pm IST
