The Regulatory Update relates to the Insurance Regulatory and Development Authority of India (Policyholders’ Education and Protection Fund) Regulations, 2026, notified on 30 July 2026, which come into force on publication in the Official Gazette. The regulations provide for the establishment and administration of the Policyholders’ Education and Protection Fund to protect policyholders’ interests and promote education, awareness and financial inclusion. The Corpus Fund will comprise contributions by the Authority, grants and donations, penalties realised under the applicable laws, undistributed disgorged amounts after three years, specified investment income and other sources approved by the Authority. Only the investment income earned on the Corpus Fund will be utilised for activities including policyholder education and awareness, grievance redressal support, unclaimed amount recovery infrastructure, technology-based policyholder services and other purposes specified by the Authority. The regulations also provide for constitution of a Fund Management Committee to administer the Fund, prescribe its composition and functions, require quarterly meetings, annual reporting and maintenance of records, provide for annual audit by the Comptroller and Auditor General of India, prescribe investment of the Fund in Central and State Government securities and scheduled commercial bank deposits, and enable delegation of powers and issuance of clarifications.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
NOTIFICATION
Hyderabad, the 30th July, 2026
Insurance Regulatory and Development Authority of India (Policyholders’ Education and Protection Fund) Regulations, 2026
F. No. IRDAI/Reg/ 10/224/2026.— In exercise of the powers conferred by section 16A read with section 26 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) and clause (zd) of sub-section (2) of section 114A of the Insurance Act, 1938 (4 of 1938), the Authority, in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely: –
CHAPTER I
PRELIMINARY
1. Short title and commencement.
(1) These Regulations may be called the Insurance Regulatory and Development Authority of India (Policyholders’ Education and Protection Fund) Regulations, 2026.
(2) These Regulations shall come into force on the date of their publication in the Official Gazette.
(3) These Regulations shall be reviewed once every three years from the date of publication, unless a review, repeal or amendment is warranted earlier.
2. Objective: The objective of these regulations is to provide for the establishment of a Fund inter alia out of grants, donation and penalties, to be administered and utilised for the purpose of protection of the policyholders’ interests, and for promoting, educating and creating awareness among policyholders and financial inclusion.
3. Definitions.
(1) In these regulations, unless the context otherwise requires: –
a. ‘Act’ means the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
b. ‘Authority’ means the Insurance Regulatory and Development Authority of India established under sub-section (1) of Section 3 of the Act;
c. Committee’ means the Fund Management Committee constituted under regulation 7 of these regulations;
d. ‘Corpus Fund’ means the sum of the amounts credited to the Policyholders’ Education and Protection Fund in accordance with provisions of Regulation 5(1) of these regulations;
e. ‘Financial Year’ means the year commencing on the first day of April and ending on the thirty-first day of March of the succeeding year;
f. ‘Fund’ means the Policyholders’ Education and Protection Fund created by the Authority under section 16A of the Act.
(2) Words and expressions not defined in these regulations, but defined in the Act or the Insurance Act, 1938 or the rules and regulations made thereunder, shall have the same meanings as have been assigned to them under those enactments, unless the context requires otherwise.
CHAPTER II
Policyholders’ Education and Protection Fund
4. Establishment of Fund.
(1) There shall be a Fund to be called the Policyholders’ Education and Protection Fund.
(2) The Fund shall be separate from the Insurance Regulatory and Development Authority Fund specified in section 16 of the Act and shall be administered and utilised by the Authority in the manner and for the purpose specified in these regulations.
5. Amounts to be credited to the Corpus Fund.
(1) The following amounts shall be credited to the Corpus Fund:-
i. Contributions made by the Authority.
ii. Any grants and donations given by
a. the Central Government, State Governments;
b. the Authority; and
c. companies or any other institutions;
for the purposes of the Fund.
iii. The sums realised by way of penalties by the Authority under the Act or the Insurance Act, 1938 or rules and regulations thereunder.
Provided that an additional amount paid by the insurers or insurance intermediaries on account of delayed payment of annual fee etc. shall not be construed as penalty for the purpose of these regulations.
iv. Disgorged amount which has remained undistributed for a period of three years from the date of passing of the direction under section 34 of Insurance Act, 1938.
Provided that eligible claimants shall have the right to claim the dues before the end of seven years from the date of transfer of the undistributed disgorged amount to the Fund.
v. Any investment income that remains unutilized at the end of the second financial year after the financial year in which such income was earned.
vi. Such other sources of funds as the Authority may specify in the interest of policyholders.
(2) For the purposes of sub-regulation (1), the amounts shall be credited to the Fund through NEFT / RTGS / IMPS / UPI or online payment.
6. Utilisation of Fund.
(1) Only the investment income earned on the corpus fund shall be utilised for specified activities as detailed in sub-regulation (2).
(2) The sum as specified in sub-regulation (1) shall be utilised for the following purposes for protection of policyholders’ interest, promotion of policyholders’ education and awareness in accordance with these regulations:
(i) Category A — Education, Awareness and Inclusion:
a. Financial literacy programmes;
b. Training and accreditation of insurance trainers and individuals for implementation of insurance awareness programmes;
c. Consumer Protection Initiatives
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- Promoting informed decision making among policyholders;
- Supporting initiatives that improve transparency, disclosure, and consumer understanding of insurance products;
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d. Digital tools for policy tracking, premium reminders, and claims assistance;
e. Independent research and focused studies on policyholder behaviour, claims servicing experience, mis-selling patterns, grievance redressal and on matters relating to insurance penetration, financial inclusion and policyholders’ protection issues;
f. Promoting insurance awareness including conducting awareness programmes through media – print, electronic and other means;
g. Educating policyholders on insurance products, rights, obligations, and claims processes;
h. Developing educational materials in multiple regional languages;
i. Organizing seminars, workshops, and outreach programmes;
j. Conducting surveys to identify awareness gaps and emerging policyholders’ concerns;
k. Supporting evidence-based policy formulation;
l. Supporting activities aligned with the objective of expanding insurance coverage and reducing the protection gap; and
m. Contributing to programs collectively organised by financial sector regulators viz RBI, IRDAI, SEBI, PFRDA for empowerment of consumers.
(ii) Category B — Providing Support for Grievance Redressal:
a. Strengthening awareness regarding grievance redressal mechanisms, Insurance Ombudsman services, and policyholder rights;
b. Conducting outreach programmes to educate policyholders on their rights and remedies;
c. Supporting policyholders, especially vulnerable and underserved sections like senior citizens, rural consumers, and persons with disabilities, in accessing grievance redressal channels;
e. Facilitating initiatives that improve accessibility to policyholders’ support services; and
f. Support to the Insurance Ombudsman network.
(iii) Category C — Unclaimed Amount Recovery Infrastructure:
a. Development and operation of a centralised portal enabling policyholders and nominees to locate unclaimed amounts;
b. Integration of insurer databases with national identity registries;
c. Outreach programmes to notify nominees of unclaimed entitlements; and
d. Supporting initiatives for tracing beneficiaries and reducing unclaimed amounts.
(iv) Category D —Technology based Policyholder Services
a. Development of digital platforms for policyholder education and awareness;
b. Providing multilingual support services through helplines, chatbots, and digital platforms;
c. A proactive communication system to alert policyholders
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- regarding premium dues, policy lapses, maturity benefits, claims, unclaimed amounts etc.;
- to take preventive measures and to provide dos and don’ts action in case of catastrophes, floods, etc.;
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d. Tech-based feedback from a cohort of policyholders on surrender of the policies, lapsed policies, polices sourced through a class or specific insurance intermediary etc., and
e. Developing or redeveloping a digital platform, whether complete or in parts, for making grievance redressal mechanism more robust, responsive and efficient.
(v) Category E — Such other purposes as may be specified by the Authority.
CHAPTER III
FUND MANAGEMENT COMMITTEE
7. Constitution of the Committee.
(1) The Authority shall constitute a Fund Management Committee to administer and manage the Fund.
(2) The Committee shall consist of the following members, namely:-
i. Whole-Time Member In-charge of Policyholders’ Protection and Grievance Redressal Department (PP&GR Department) as ex-officio chair;
ii. One more Whole-Time Member nominated by Chairperson, IRDAI;
iii. Two Independent Members from consumer advocacy, financial inclusion, or insurance academia appointed by the Chairperson, IRDAI;
iv. One representative each from the Life Insurance Council, the General Insurance Council, and the Council for Insurance Ombudsman;
v. The Executive Director in charge or Head of the Department of the PP&GR Department who shall be the convener of the Committee.
(3) The term of office of members referred in sub-regulation 2(iii) and (iv) shall be two years, which may be extended for a further period of two years.
(4) Any vacancy arising out of resignation, retirement or death of a member or for any other reason shall be filled by the Chairperson, IRDAI.
8. Functions of the Committee.
(1) The Committee shall
i. plan policyholders’ education and protection activities for the next financial year keeping in view the activities mentioned in regulation 6(2) and submit its recommendations thereon to the Authority.
ii. submit, for the consideration of the Authority, an Annual Report by 30th June of the subsequent year detailing the utilisation of the Fund towards key activities undertaken during the previous year, along with actual expenditure.
iii. maintain detailed records of each activity, including purpose, location, type of activity, participant details, etc.
iv. put in place a policy for the investment of the Fund.
v. oversee the functions of the Fund.
vi. carry out such other functions as may be assigned by the Authority from time to time.
9. Meetings of the Committee.
(1) Meetings of the Committee shall be convened at least once in three months by the convener.
(2) Three members of the Committee shall constitute the quorum for the transaction of business at a meeting of the Committee.
Provided that presence of the Chairperson of the Committee is mandatory.
(3) Every member, who is directly or indirectly interested in any matter coming up for consideration at a meeting of the Committee, shall disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the meeting of the Committee and such member shall not take part in any deliberation of the Committee with respect to that matter.
(4) A register of Committee members’ interests shall be maintained and updated annually.
10. Expenses of the Committee.
(1) The expenses including travel and other allowances of members of the Committee, who are officials of the Authority, and invitees who are officials of the Authority, shall be borne by the Authority in accordance with their entitlements.
(2) The expenses including travel and other allowances of members of the Committee, who are not officials of the Authority, and invitees who are not officials of the Authority, shall be borne out of the investment income earned on the Corpus Fund..
CHAPTER IV
INVESTMENT, ACCOUNTS AND AUDIT
11. Maintenance of accounts and audit of accounts.
(1) The amount available for utilisation during a financial year in accordance with regulation 6 (1) shall be kept in a dedicated account in a scheduled bank or invested in treasury bills of the Government of India.
Where the said amount remains unutilized within two financial years following the financial year in which such income was earned, such amount, at the end of the second financial year, shall be credited to the corpus fund.
(2) The corpus fund shall be invested in accordance with regulation 12 of these regulations.
(3) The Committee shall ensure maintenance of proper accounts and other relevant records in relation to the Fund giving therein the details of all receipts to, and, expenditure from the Fund and other relevant particulars.
(4) The Fund shall maintain its accounts including Income and Expenditure Statement in the form and manner as specified by the Committee.
(5) The Fund’s accounts shall be audited annually by the Comptroller and Auditor General of India.
(6) The accounts referred to in sub-regulation (3) shall be prepared before the expiry of three months from the end of each financial year and shall form a part of the Annual statement of accounts of the Authority prepared in accordance with Insurance Regulatory and Development Authority (Form of Annual Statement of Accounts and Records) Rules, 2001.
12. Investment of the Fund.
(1) The investment of the Fund shall be in Central Government Securities and State Government Securities and deposits with scheduled commercial banks.
(2) The Fund shall be invested in accordance with a policy approved by the Committee.
CHAPTER V
MISCELLANEOUS
13. Delegation of powers.
The Authority may delegate its powers and functions in these regulations to the Chairperson or one or more Whole-Time Members or both or any officer of the Authority.
14. Power to issue clarfications and to remove difficulties, if any.
In order to remove any doubts or the difficulties that may arise in the application or interpretation of any of the provisions of these regulations, the Authority may issue appropriate clarifications as and when deemed necessary.
G. R. SURYA KUMAR, Executive Director
[ADVT.-III/4/Exty./250/2026-27]
