On PEPF, IRDAI said the fund will be a dedicated institutional mechanism to promote insurance awareness and literacy initiatives, strengthen grievance redressal mechanisms and facilitate tracing and recovery of unclaimed insurance amounts.
| Photo Credit: Special arrangement
Insurance regulator IRDAI approved various regulatory, supervisory and developmental reforms, including the Policyholders’ Education and Protection Fund (PEPF) regulations, besides permitting a new general insurer at its meeting on Tuesday (July 28, 2026) .Crucial to paving the way for implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act), the reforms range from those that provide insurers with greater operational and financial flexibility through liberalised investment norms and a facilitative framework for capital infusion and corporate restructuring.Streamlining of provisions relating to transfer of shares and amalgamations while strengthening actuarial oversight and financial governance are also part of the exercise, the regulator said on approvals to 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.On PEPF, IRDAI said the fund will be a dedicated institutional mechanism to promote insurance awareness and literacy initiatives, strengthen grievance redressal mechanisms and facilitate tracing and recovery of unclaimed insurance amounts.In another measure seeking to strengthen policyholder protection, the regulator has approved amendments to the regulations governing insurance intermediaries. Mandatory tagging of the authorised sales person to every insurance proposal, policy and certificate of insurance is a key feature. It has been introduced to enhance accountability and traceability across the insurance distribution process, strengthen regulatory oversight and promotes greater transparency for policyholders.Other reforms the IRDAI meeting approved included the introduction of perpetual registration supported by an annual fee regime instead of periodic renewals, and regulations governing penalties, primarily towards a structured process for initiation of proceedings, issuance of show-cause notices and passing of reasoned orders.Approving the grant of a certificate of registration to ProTec General Insurance, IRDAI said that since January, this is the fourth registration -- comprising two general insurers, one health insurer and one reinsurer.IRDAI said encouraging progress has been made in implementing the capital reforms introduced under the SBSR Act. Pursuant to the amendment permitting up to 100% foreign direct investment in insurers, one life insurer and one general insurer have increased foreign shareholding beyond the earlier stipulated limit of 74%, signalling enhanced investor confidence, while facilitating greater capital inflows and reaffirming India’s attractiveness as a preferred destination for long-term investment in the insurance sector. Published - July 30, 2026 12:10 am IST
