IRDAI Reforms July 2026: Perpetual Registration and PEPF
Why in the news
The insurance regulator’s Authority meeting on 28 July 2026 cleared a package of changes covering a policyholder fund, how intermediaries are licensed, accountability in sales and the process of imposing penalties.
Key facts
- Meeting date: 28 July 2026.
- PEPF corpus approved: ₹800 crore.
- Perpetual registration plus an annual fee replaces periodic renewal for intermediaries.
- Salesperson tagging ties each proposal and policy to an authorised salesperson.
- The Penalties Regulations, 2026 on how penalties are imposed were also approved.
- ProTec General Insurance registered, the fourth new general insurer since January 2026.
| Reform | Purpose |
|---|---|
| Policyholders’ Education and Protection Fund | Insurance awareness, grievance redressal, technology-led services, recovery of unclaimed amounts; set up under Section 16A of the IRDAI Act, 1999 (inserted by SBSR Act, 2025) |
| Perpetual registration | Lower compliance burden; shift to continuous supervision |
| Salesperson tagging | Accountability, traceability and less mis-selling |
| Penalties Regulations, 2026 | Open process, how penalties are worked out, and appeal routes |
| New insurer | ProTec General Insurance; more competition |
Significance
- Easier compliance for intermediaries.
- Stronger protection and traceability for policyholders.
- More competition in general insurance.
Exam angle
- Section for PEPF: 16A of the IRDAI Act, 1999.
- Amending law: SBSR Act, 2025.
- Initial PEPF corpus: ₹800 crore.
- Count for ProTec: fourth new general insurer since January 2026.