IRDAI 137th Meeting: Perpetual Registration, Tagging, Investment Easing
Why in the news
The insurance regulator approved a bundle of rule changes at its meeting on 28 July 2026 (reported 31 July). They put the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 into practice and serve the aim of Insurance for All by 2047.
Key facts
- Meeting: 137th Authority Meeting, held at the Hyderabad head office on 28 July 2026.
- Perpetual registration: a certificate stays in force until IRDAI suspends or cancels it or the intermediary surrenders it; earlier periodic renewal ends.
- Annual fee: non-refundable; the higher of ₹10,000 or 0.04% of the previous year’s commission and other receipts from insurers.
- Salesperson tagging: the name and functional identity of the selling person, plus branch contact details, must show on proposal forms, policies and certificates; from 1 January 2027.
- Direct digital sales: where no salesperson is involved, the principal officer’s contact details must be shown.
- Training: insurance marketing firms’ principal officers and salespersons need at least 25 hours of training every three years, via an IRDAI-recognised examination body.
- Disclosures: extra obligations for majority foreign-owned intermediaries and those crossing commission-income thresholds, in line with 100% FDI.
Regulations cleared
- Actuarial, Finance and Investment Functions of Insurers (Second Amendment) Regulations, 2026.
- Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers (Amendment) Regulations, 2026.
- Policyholders’ Education and Protection Fund Regulations, 2026, and Penalties (Manner and Procedure) Regulations, 2026.
- Registration granted to ProTec General Insurance Ltd.; the tagging amendments were also approved.
Investment norms eased
| Area | Revised limit |
|---|---|
| Operational infrastructure SPVs rated AA or above | Up to 20% |
| Private limited companies, AIFs and VCFs together | 3% (life insurers); 5% (general insurers) |
| Exposure to promoter groups | 5% of investment assets |
| Repo and government securities lending | Lower of 25% of available securities or ₹10,000 crore |
A yearly Financial Condition Report is now compulsory, covering solvency, reserves, liquidity, stress tests and asset-liability resilience.
SBSR Act, 2025
| Point | Detail |
|---|---|
| Passage | Lok Sabha 16 Dec 2025; Rajya Sabha 17 Dec 2025; assent 20 Dec 2025 |
| Commenced | 5 February 2026 (except the Section 32A curb on common directors and officers of insurers, banks and investment companies) |
| Laws amended | Insurance Act 1938, LIC Act 1956, IRDA Act 1999 |
| FDI | Insurers 74% to 100% (Section 3AA); intermediaries stay at 100% automatic route; LIC 20% |
| Foreign reinsurers | Net-owned fund cut from ₹5,000 crore to ₹1,000 crore |
- The ₹100 crore minimum paid-up capital for insurance co-operative societies was removed.
- Licensing is one-time, and a licence can be suspended instead of cancelled outright.
- IRDAI can recover wrongful gains; penalties are rationalised; regulations must follow a consultative process.
- Section 16A creates the Policyholders’ Education and Protection Fund (PEPF), run by IRDAI and fed by grants, donations and penalty money; it backs awareness, grievance redress and tracing unclaimed amounts.
About IRDAI
- Statutory body under the IRDA Act, 1999; headquartered in Hyderabad (moved from Delhi in 2001).
- Set up on the Malhotra Committee (1993) advice, which urged private entry and an independent regulator.
- Members: a Chairperson, up to five whole-time and four part-time members.
- D-SIIs named by IRDAI: LIC, GIC Re and The New India Assurance Company.
Exam angle
- Perpetual registration fee: higher of ₹10,000 or 0.04%.
- Tagging effective date: 1 January 2027.
- FDI cap in insurers: 100%; foreign reinsurer NOF: ₹1,000 crore.
- Section 16A: PEPF.