Prelims: Current events of national and international importance | Economy
Why in News?
Recently, Insurance Regulatory and Development Authority of India (IRDAI) approved amendments to the Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers Regulations, 2026.
- Aim – To reform modernise the insurance sector and implement the Sabka Bima Sabki Raksha (SBSR) Act, 2025.
- Key Decisions – The approval of amendments 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.
Policyholder Protection
- Policyholders’ Education and Protection Fund (PEPF) – Operationalised under Section 16A of IRDA Act, 1999 (via SBSR Act).
- Functions – Promote insurance literacy, strengthen grievance redressal, trace unclaimed amounts, leverage technology for services.
- Objective – Empower and safeguard policyholders while expanding insurance penetration.
Insurance Intermediaries Framework
- Mandatory Tagging – Every proposal/policy linked to authorised salesperson for accountability.
- Perpetual Registration – Annual fee regime replaces periodic renewals.
- Compliance – Reduced costs, streamlined rules aligned with SBSR Act and FDI norms.
- Governance – Enhanced disclosure and accountability standards.
Enforcement and Regulatory
- Penalties Regulation – Transparent, uniform framework for imposing penalties under Insurance Act, 1938 and IRDAI Act, 1999.
- Process – Structured initiation, show‑cause notices, reasoned orders to fairness and transparency in regulatory actions.
- Impact – Strengthens accountability, boosts investor and public confidence.
Reference
Indian Express | IRDAI
