IRDAI Proposes Perpetual Registration for TPAs Under Draft Amendment Regulations

The IRDAI has issued an Exposure Draft proposing amendments to the IRDAI (Third Party Administrators – Health Services) Regulations, 2016, following the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The proposed amendments introduce a framework for perpetual registration of Third Party Administrators (TPAs), subject to payment of annual fees and compliance with regulatory requirements. They also prescribe transitional provisions for TPAs holding valid certificates, procedures for continuation of registration, delayed application and fee payment, and consequences of non-payment. The draft replaces references to the “Authority” with “IRDAI” or “Competent Authority” in specified provisions, updates references to the National Medical Commission, permits eligible TPAs to pursue equity listing subject to prescribed conditions, and revises various procedural provisions for regulatory consistency. IRDAI has invited comments and suggestions from stakeholders on the draft amendments in the prescribed format by 10 July 2026.

Insurance Regulatory and Development Authority of India

Exposure Draft on the IRDAI (Third Party Administrators – Health Services)
(Amendment) Regulations, 2026.

Date: 19.06.2026

Pursuant to the notification of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (“SBSR Act”), it is proposed to amend the extant IRDAI (Third Party Administrators — Health Services) Regulations to align them with the provisions of the SBSR Act.

The key amendments proposed cover the following:

• Manner of Grant of perpetual registration to Third Party Administrators (TPAs), subject;
• Manner of payment of Annual fee;
• Other enabling provisions to ensure regulatory consistency and facilitate smooth implementation.
• Transitional provisions for TPAs holding valid Certificates of Registration as on the date of commencement of the amended regulatory framework;

The IRDAI invites comments, suggestions, and feedback from all members of public and other stakeholders on the proposed amendments.

The Exposure Draft of the IRDAI (Third Party Administrators — Health Services) (Amendment) Regulations,2026 is enclosed as Annexure I. Members of public and other stakeholders are requested to submit their comments in the format specified in Annexure II on or before 10th July 2026.

Comments/feedback may be sent to Health Department at health@irdai.gov.in, Mr. Suneel Anumolu at suneel.anumolu@irdai.qov.in, and Mr. Sudeep Chandra at sudeep.chandra@irdai.gov.in.

Annexure 1

DRAFT INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA
(THIRD PARTY ADMINISTRATORS – HEALTH SERVICES) (AMENDMENT)
REGULATIONS 2026

F.No. IRDA/Reg./ / .– In exercise of the powers conferred under Section 114A of the Insurance Act, 1938 and Section 14 read with Section 26 of the IRDA Act, 1999 and in consultation with the Insurance Advisory Committee, the Authority hereby makes the following Regulations, namely: –

1. Short title and commencement:

1. These Regulations may be called the IRDAI (Third Party Administrators— Health Services) (Amendment) Regulations, 2026

2. It shall come into force from the date of its notification in the Official Gazette.

2. Throughout the IRDAI (Third Party Administrators—Health Services) Regulations, 2016, (hereinafter referred to as the “Principal Regulations”) —

i. for the words “Medical Council of India”, the words “National Medical Commission” shall be substituted.

ii. For the word “Authority”, wherever it occurs, the words “Competent Authority” shall be substituted, except in cases where the word “Authority” has been substituted with “IRDAI”.

3. In sub-regulation (1) of Regulation 2 of Principal Regulations —

(i) in clause (d), and clause (m) —

for the word “Authority”, the word “IRDAI” shall be substituted

(ii) in clause (j) —

for the word “Authority”, wherever it occurs, the word “IRDAI” shall be substituted.

(iii) after clause (m), the following clause shall be inserted, namely:—

(n) “Competent Authority” means

a. Chairperson or

b. Such whole-time member or such committee of the whole-time members or such officer (s) of the Authority, as may be authorized by the Chairperson.

4. In Regulation (5) and (6) —

for the word “Authority”, wherever it occurs, the word “IRDAI” shall be substituted

5. In sub-regulation (2) of Regulation 7 —

for the words “in favour of the Authority”, the words “in favour of the IRDAI” shall be substituted.

6. In Regulation 7, the following shall be inserted after sub-regulation 6 —

(7) Procedure for issuance of Certificate of Registration to existing TPAs:

A Third Party Administrator (TPA) holding a Certificate of Registration issued prior to the coming into force of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, with a validity period of three years, may apply to the Competent Authority, in such form and manner as may be specified by it, for continuation of registration and issuance of a Certificate of Registration under these Regulations, within ninety (90) days prior to the expiry of its existing Certificate of Registration upon payment of the annual fee specified under Regulation 9.

Provided that the Certificate of Registration issued under these Regulations shall take effect from the date of expiry of the existing Certificate of Registration.

Provided further that where a TPA fails to submit such application within the period specified above, it may, within ninety (90) days from the date of expiry of the existing Certificate of Registration, submit the application along with the reasons for such delay, payment of the applicable annual fee and an additional fee of seven hundred and fifty rupees, and the Competent Authority may, if satisfied with the reasons so furnished, consider such application.

Provided also that where the application is not submitted within ninety (90) days from the date of expiry of the existing Certificate of Registration, the TPA shall be required to apply afresh for registration in accordance with Regulation 7.

7. In Regulation 9 — 

(i) sub-regulation (4) shall be substituted with the following; –

Validity of Certificate of Registration: A Certificate of Registration granted by the Competent Authority to a Third Party Administrator (TPA) under these Regulations shall remain in force, subject to payment of such annual fee as may be specified by the Competent Authority from time to time, unless it is revoked, suspended, cancelled, or otherwise ceases to be in force in accordance with these Regulations, the procedure specified by the Competent Authority, and the conditions stipulated under sub-section (6) of Section 42D of the Insurance Act, 1938, as amended from time to time.

(ii) In sub-regulation (2), —

a) for the words “and other taxes”, the words “plus applicable taxes” shall be substituted

b) for the words “to the Authority” wherever they occur, the words “to the IRDAI” shall be substituted.

(iii) In sub-regulation (5), —

a. for the word “Authority”, the word “IRDAI” shall be substituted

b. for the words “validity period”, the words “validity status” shall be substituted.

8. In Regulation 9, the following shall be inserted as sub-regulation (6); –

(6) Annual fee:

i. Every Third Party Administrator (TPA) holding a valid Certificate of Registration shall pay an annual fee of 250,000 (Rupees Fifty Thousand only), plus applicable taxes, on or before the 31st day of January of each year in respect of the ensuing financial year.

Provided that where a TPA fails to pay the annual fee on or before the 31st day of January, it may remit the same on or before the 31st day of March of that year together with interest at the rate of two per cent of the annual fee payable.

Provided further that failure to pay the annual fee together with the applicable interest on or before the 31st day of March shall constitute a breach of the conditions of registration and shall attract the consequences specified under sub-section (6) of section 42D of the Insurance Act, 1938.

ii. Where a Certificate of Registration is granted during the course of a financial year, the annual fee for that financial year shall be payable on a pro-rata basis, calculated from the date of grant of the Certificate of Registration up to the end of that financial year, and shall be paid within fifteen days from the date of grant of such Certificate of Registration.

iii. A Third Party Administrator whose Certificate of Registration is under suspension shall continue to be liable to pay the annual fee when it falls due during the period of suspension.

Provided that, where such suspension subsequently results in cancellation of the Certificate of Registration, any annual fee paid during the period of suspension shall stand forfeited and shall not be refundable.

iv. Where a Third Party Administrator voluntarily surrenders its Certificate of Registration in accordance with Regulation 17, any annual fee already paid shall stand forfeited and shall not be refundable.

9. In sub-regulation (2) of Regulation 12—

a. for the words “service tax”, the word “taxes” shall be substituted.

b. for the words “paid to the Authority”, the words “paid to the IRDAI” shall be substituted.

10. After sub-regulation (1) of Regulation 13, the following shall be inserted, —

(1A) A Third Party Administrator (TPA) may approach the appropriate financial sector regulator for divestment of equity shares by existing shareholders and/or fresh issue of equity shares on recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956, in accordance with applicable laws, rules, Regulations, guidelines in force and upon fulfilment of following conditions:

a. The Board of the TPA resolves that the TPA shall be able to comply with the regulatory stipulations of the said financial sector regulator(s).

b. All the regulatory provisions stipulated by the IRDAI shall be complied with scrupulously.

c. The TPA shall have obtained prior approval for transfer of shares pursuant to an offer for sale and/or fresh issuance of shares, as may be required under the Regulations.

Provided that the submission of the details of transferee shall not be mandatory.

d. The TPA shall file an intimation with the IRDAI at least 15 days before approaching the appropriate financial sector regulator for listing of its equity shares. The TPA shall also keep the IRDAI informed regarding the subsequent developments in the said matter.

e. Any documents filed by the TPA under this chapter or any communications between the TPA and the IRDAI with regard to proposed listing of equity shares shall not in any manner be deemed to be or serve as a validation by the IRDAI of the facts, representations, assertions or anything written in the offer documents. This fact shall be disclosed in bold letters in the offer document.

f. Such other conditions as may be specified by the Competent Authority.

11. In Regulation 14 —

for the words “registered with the Authority” wherever they occur, the words “registered with the IRDAI” shall be substituted.

12. Regulation 15 shall be omitted;

13. In Regulation 16, —

i. in clause (I) of sub-regulation (1), for the word “Authority”, the word “IRDAI” shall be substituted

ii. in sub-regulation (5), for the word “Authority”, the word “IRDAI” shall be substituted.

14. In sub-regulation (1) of Regulation 16, the following shall be inserted after clause (q) as clause (r) —

“The TPA fails to comply with the provisions of Section 42D (6) of the Insurance Act,1938 as amended by Sabka Bima Sabki Raksha (Insurance Laws) Amendment Act-2025”.

15. In sub-regulation (3) of Regulation 17 —

for the word “Authority”, the word “IRDAI” shall be substituted.

16. In sub-regulation (3) and (4) of Regulation 19 —

for the word “Authority” wherever it occurs, the word “IRDAI” shall be substituted.

17. In Regulation 22 —                )

for the words “jurisdiction of the Authority”, the words “jurisdiction of the IRDAI” shall be substituted.

18. In Regulation 24 —

for the words “Authority” wherever it occurs, the words “IRDAI” shall be substituted.

19. For sub-regulation (3) of Regulation 26, the following shall be substituted—Transitory Provisions:

(i) Any Certificate of Registration granted or renewed in respect of a Third Party Administrator after the commencement of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, but before the commencement of these Regulations under the transitional arrangements in force, shall be deemed to be a Certificate of Registration issued under these Regulations and shall continue to remain valid in accordance with the provisions of these Regulations.

(ii) Any application for renewal of a Certificate of Registration pending before the IRDAI, or falling due for renewal in accordance with the validity period specified in the existing Certificate of Registration as on the date of commencement of these Regulations, shall be processed in accordance with the provisions of the Principal Regulations as amended by these Regulations. The Certificate of Registration issued pursuant to such renewal shall be governed by and remain valid in accordance with the provisions of the Principal Regulations as so amended.

20. In Regulation 27 —

for the words “Chairperson of the Authority”, the words “Chairperson of the IRDAI” shall be substituted.

21. In Schedule — I of Principal Regulations, —

i. clauses 12, 13 & 14 shall be omitted.

ii. after clause 29, the following shall be inserted,

30. Regulation 7 (7): Application for issuance of Certificate of Registration to existing TPAs.

Page 3 of 8

Annexure 2

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