The Insurance Regulatory and Development Authority of India issued a circular introducing transitional arrangements for insurance intermediaries following the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which amended Section 42D of the Insurance Act, 1938. Under the amendment, Certificates of Registration (CoR) granted to insurance intermediaries will now have continuous validity, replacing the earlier system of three-year validity and periodic renewal. Registrations will remain valid unless suspended or cancelled by the authority, subject to payment of an annual fee. To ensure smooth implementation, IRDAI introduced a transitional interim annual fee arrangement for intermediaries receiving fresh registration or renewal between 5 February 2026 and 30 June 2026. During this period, intermediaries must pay an interim annual fee at the time of issuance of registration. If renewal fees were already paid after 5 February 2026 under the earlier system, such amounts will be adjusted against the new annual fee or refunded, pending notification of a comprehensive regulatory framework.
Insurance Regulatory and Development Authority of India
Press Release | 17th March, 2026
Transitional arrangements for issuance of Certificate of Registration and payment of Annual Fee
IRDAI issued a circular on 16th March 2026 outlining transitional arrangements for issuance of Certificates of Registration and payment of annual fees for insurance intermediaries following the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which came into effect on 5 February 2026.
The Act has amended Section 42D of the Insurance Act, 1938, providing that registrations granted to insurance intermediaries will now remain valid on a continuous basis, subject to payment of an annual fee, until such registration is suspended or cancelled by the Authority.
As a result of the amendment, the earlier system prescribing a three-year validity period for Certificates of Registration and payment of renewal fees has been discontinued with effect from 5 February 2026. Going forward, all insurance intermediaries will be required to comply with the annual fee requirement as may be specified through regulations.
To facilitate a smooth transition to the new regime, an interim arrangement has been introduced applicable to insurance intermediaries granted fresh registration or renewal of Certificate of Registration during the period from 5 February 2026 to 30 June 2026. During this period, an interim annual fee will be payable at the time of issuance of the Certificate of Registration. The applicable fee structure has been specified in the circular. The interim measure will remain in force until a comprehensive regulatory framework governing annual fee payments is notified.
Cases where renewal of registration has been granted on or after 5 February 2026 and the renewal fee had already been paid earlier, the amount collected will be adjusted against the interim annual fee payable. Any excess amount arising from such adjustment will be refunded to the concerned intermediary.
Insurance Regulatory and Development Authority of India
Ref: IRDAI/INT/ CIR/MISC/ 41/ 3/2026 | Dated: 16th March, 2026
Circular
Subject: Transitional arrangements for payment of Annual Fee and issuance of Certificate of Registration pursuant to the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025
In exercise of the powers conferred under sub-section (4A) (DI Section 42D of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (hereinafter referred to as the “SBSR Act”), which came into effect on 5th February 2026, the Insurance Regulatory and Development Authority of India (hereinafter referred to as “the Authority”) hereby specifies the following transitional arrangements relating to the payment of annual fee and issuance of registration to insurance intermediaries.
1. Applicability
1.1 This Circular shall apply to the following categories of insurance intermediaries:
a. Insurance Brokers
b. Corporate Agents
c. Insurance Marketing Firms (IMFs)
d. Web Aggregators
e. Common Service Centres (CSCs)
f. Insurance Surveyors and Loss Assessors
g. Insurance Repositories
h. Third Party Administrators (TPAs)
i. Any other entities registered as insurance intermediaries under applicable regulations.
2. Background
2.1 The SBSR Act has, inter alia, amended Section 42D of the Insurance Act, 1938 to provide that the registration granted to an insurance intermediary shall remain inforce subject to payment of such annual fee as may be specified by regulation, until such Certificate of Registration (CoR) is suspended or cancelled by the Authority.
3. Discontinuation of Renewal Framework
3.1 With effect from 5th February 2026, the earlier framework providing for three year validity of the COR and payment of renewal fee stands discontinued.
3.2 Registration of insurance intermediaries shall henceforth be subject to payment of annual fee in accordance with the amended provisions of Section 42D of the Insurance Act, 1938 and the regulations framed there under.
4. Interim Annual Fee – Transitional Arrangement
4.1 As a transitional measure, insurance intermediaries granted fresh registration or renewal of COR during the period 5th February 2026 to 30th June 2026 shall pay the interim annual fee at the time of issuance of the Certificate of Registration.
4.2 The interim annual fee applicable for the transitional period is specified in Annexure I.
4.3 This interim arrangement shall apply to:
a. insurance intermediaries granted fresh registration during the period 5th February 2026 to 30th June 2026; and
b. insurance intermediaries whose renewal of CoR falls due within the same period.
4.4 This is an interim arrangement till the new framework is made through regulations in due course.
5. Adjustment of Fees for Applications Approved on or After 5th February 2026
5.1 In respect of cases where renewal of COR has been granted on or after 5th February 2026, and where the renewal fee had already been remitted prior to such renewal, the fee so collected shall be adjusted against the interim annual fee payable, and the balance amount, if any, shall be refunded.
6. Removal of Difficulties
6.1 The Authority may issue further clarifications or directions, as may be necessary, for the removal of any difficulties in implementation of sub-section (4A) of Section 42D of the Insurance Act, 1938.
This Circular is issued with the approval of the Competent Authority.
J. Anita
Chief General Manager
Intermediaries Dept.
Annexure -I
Interim Annual Fee Structure (Transitional Arrangement)
| Si No. |
Name of Insurance Intermediary |
Interim Annual Fee (T)Payable | GST @18% (t) | Total (t) |
| 1 | Direct Broker | 33,000 | 5,940 | 38,940 |
| 2 | Reinsurance Broker | 1,00,000 | 18,000 | 1,18,000 |
| 3 | Composite Broker | 1,67,000 | 30,060 | 1,97,060 |
| 4 | Corporate Agent | 8,000 | 1,440 | 9,440 |
| 5 | IMF | 1,000 | 180 | 1,180 |
| 6 | Web Aggregator | 8,000 | 1,440 | 9,440 |
| 7 | CSC | 1,000 | 180 | 1,180 |
| 8 | Third Party Administrator | 50,000 | 9,000 | 59,000 |
| 9 | Individual Surveyor | 1,000 | 180 | 1,180 |
| 10 | Corporate Surveyor | 2,000 | 360 | 2,360 |
| 11 | Insurance Repositories | 17,000 | 3,060 | 20,060 |
