Insurance concept, Businessman holding red umbrella on falling rain with protect with icon business, health, financial, life, family, accident and logistics insurance on city background
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ipopba
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed to constitute a Fund Management Committee to oversee the governance, administration, utilisation, and performance monitoring of the Policyholders’ Education and Protection Fund (PEPF).The PEPF, with a corpus of ₹800 crore, was constituted by IRDAI in March 2026 pursuant to the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which introduced Section 16A in the IRDAI Act, 1999.The provision mandates the establishment of a dedicated Fund to promote policyholder education, safeguard policyholder interests, and support other policyholder-centric initiatives as may be prescribed.As envisaged under the Act, the Fund shall comprise grants and donations from the Central and State Governments, IRDAI and other sources, amounts realised through penalties under insurance laws, and such other sums as may be specified through regulations. The Fund is to be administered and utilised by IRDAI for policyholder education, protection, and related purposes. “Against this backdrop, the proposed regulations seek to establish a structured and sustainable framework for enhancing insurance awareness, strengthening policyholder protection, improving grievance support systems, and leveraging technology to deliver better policyholder services,’’ the IRDAI said., in a a consultation paper on the proposed regulatory framework for the PEPF.It is proposed that the investment income generated from the Fund corpus be utilised for nationwide insurance literacy and awareness programmes, strengthening grievance redressal mechanisms, developing technology-enabled services for policyholders, including proactive alerts during natural calamities and other emergencies and creating systems to facilitate tracing and recovery of unclaimed insurance amounts.Published on June 23, 2026
