IRDAI’s latest reforms aim to give you better protection and a more transparent experience. The regulator has approved a new policyholder protection fund, introduced greater accountability for insurance sales and established a clearer framework for regulatory action.
You expect clear information when you buy an insurance policy, fair treatment and support if something goes wrong. You may also face difficulties if you need to trace unclaimed insurance money or resolve a complaint.
The Insurance Regulatory and Development Authority of India (IRDAI) has approved several reforms during its 137th Authority Meeting to strengthen your protection, as part of the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025
A new fund to support you as a policyholder
IRDAI has approved the Policyholders’ Education and Protection Fund (PEPF) Regulations, 2026.
The fund will promote insurance awareness and financial literacy, strengthen grievance redressal, use technology to improve the services you receive and help you trace and recover unclaimed insurance amounts. It will also support other initiatives that protect and empower policyholders.
More transparency when you buy insurance
IRDAI has also made it mandatory for every insurance proposal, policy and certificate of insurance to identify the authorised salesperson involved in the sale.
This means you will know who handled your policy. According to IRDAI, this will improve accountability, make the sales process more transparent and strengthen regulatory oversight.
A clearer framework for regulatory action
The Authority has also approved the IRDAI (Manner and Procedure for Imposition of Penalties) Regulations, 2026.
These regulations introduce a structured process for regulatory proceedings, including issuing show cause notices and passing reasoned orders. IRDAI said the framework is designed to make regulatory action more consistent, fair and transparent, while strengthening public confidence in the insurance sector.
What does this mean for you?
These reforms do not change your existing policy or premium. Instead, they focus on giving you stronger protection, greater transparency and better support if you need assistance or have a grievance.
IRDAI has approved these measures as part of the implementation of the SBSR Act. Further operational details will become available as the regulations are implemented.
Summary
IRDAI’s latest reforms place you at the centre of the regulatory framework. The new measures aim to improve awareness, strengthen accountability during the sales process and create a more transparent system that better protects your interests as a policyholder.
Source: Insurance Regulatory and Development Authority of India (IRDAI) Press Release, 29-July-2026.
