The Insurance Regulatory and Development Authority of India (IRDAI) published its general response to stakeholder feedback on the Exposure Draft of the IRDAI (Third Party Administrators – Health Services) (Amendment) Regulations, 2026, issued for public comments on 19 June 2026 under Section 114A of the Insurance Act, 1938. IRDAI accepted several suggestions by expanding the preamble to invoke additional enabling provisions, inserting an Objectives clause, withdrawing the proposed substitution of “Authority” with “Competent Authority” or “IRDAI,” clarifying that existing TPAs must apply to the Authority for renewal of their Certificate of Registration and receive a revised certificate under Section 42D, and rewording the cancellation provision to align with Section 42D(6). IRDAI did not accept suggestions regarding clarification on suspension for non-payment of the annual fee, stating that the Insurance Act, 1938 and the Principal Regulations already address the matter, and rejected the proposal for a graded annual fee, noting that the revised annual fee of ₹50,000 maintains the existing overall fee burden while harmonising the payment structure. The proposed provisions relating to the listing of TPAs were omitted for future consideration under a uniform regulatory framework for insurance intermediaries.
Insurance Regulatory and Development Authority of India
General Response of IRDAI to the Feedback Received on the Draft IRDAI (Third Party Administrators – Health Services) (Amendment) Regulations, 2026.
In accordance with clause (b) of Section 114A of the Insurance Act, 1938, the IRDAI hereby publishes a general statement of its response to the comments received from the public and other stakeholders on the Exposure Draft of the IRDAI (Third Party Administrators – Health Services) (Amendment) Regulations, 2026, which was published on the Authority’s website on 19th June, 2026, inviting comments from the public and all stakeholders. The statement is set out below.
| Regulation No. in Exposur Draft |
Brief of feedback received from stakeholders | Response of IRDAI |
| – | Preamble: Feedback: The preamble to the draft amendment Regulations invoked powers only under Section 114A of the Insurance Act, 1938. It was suggested that all the enabling provisions under which the amendments are being carried out should be invoked. | Feedback Accepted. The preamble has been expanded to expressly invoke Section 114A read with Sections 42D and 42E of the Insurance Act, 1938, and Section 14 read with Section 26 of the Insurance Regulatory and Development Authority Act, 1999, to clearly reflect the statutory provisions under which the Authority is exercising its powers to notify the present amendments. |
| – | Objective clause: Feedback: The draft amendment Regulations did not contain an objective clause. It was suggested that the purpose of the amendments be set out expressly. | Feedback Accepted. An Objectives clause has been inserted as Regulation 2 to explicitly set out the objectives of the present amendments, thereby providing greater clarity regarding their purpose. |
| 2(ii) | Feedback: It was suggested that the proposed substitution of the word “Authority” with “Competent Authority”, except where it has been replaced with “IRDAI”, may give rise to ambiguity and. Authority”, and “IRDAI” at different places without a clear basis for such distinction. |
Feedback Accepted. The proposal to substitute the expression “Authority” with “Competent Authority” or “IRDAI” throughout the Principal Regulations has Regulation 2 and Regulations 5, 6, 7(2),9,14, 16, 17(3),19, 24 and 27 have been omitted from the draft amendments. |
| 7(7) | Procedure for renewal of Certificate of Registration: Feedback: The draft provision expressly refers to the issuance of a Certificate of Registration and continuation of registration, without clearly indicating whether the existing Certificate of Registration (CoR) is to be renewed or a fresh CoR is to be issued. The draft should also clearly specify the authority to whom the application for renewal is required to be made. | Feedback Accepted. The provision has been redrafted to clearly provide that existing TPAs holding a valid Certificate of Registration (CoR) shall apply to the Authority for renewal of their CoR. Upon such renewal, a revised Certificate of Registration shall be issued in accordance with Section 42D of the Insurance Act, 1938. |
| 9(4) | Validity of the Certificate of Registration. Feedback: Clarity was sought on the validity of the Certificate of Registration (CoR) in cases where a TPA fails to pay the Annual Fee within the prescribed time, and on the procedure to be followed where such non-payment results in the suspension of the TPA and the effects of such suspension. | Provision retained: Feedback Not Accepted. Section 42D of the Insurance Act, 1938 expressly provides that the Certificate of Registration (CoR) of a TPA may be suspended or cancelled, inter alia, for non-payment of the Annual Fee. Further, the consequences of suspension, cancellation, or non-renewal of the Certificate of Registration are already comprehensively provided for under Regulation 18 of the Principal Regulations. Accordingly, no further amendment on this aspect is considered necessary. |
| 9(6) | Annual Fee: The annual fee of ₹50,000 plus applicable taxes would impose a new recurring cost on TPAs. It is suggested adopting a graded or tiered fee structure linked to the scale of operations (such as the number of policies or claims serviced) instead of a uniform fee. It is emphasized that the fee should be minimal, should not discourage new entrants, and may be calibrated based on the nature and volume of business to reflect the regulatory cost. | Feedback Not Accepted. Under the existing regulatory framework, the renewal fee is ₹1,50,000 for a period of three years. The proposed amendment merely harmonizes the fee structure by prescribing an Annual Fee of ₹50,000 per annum, without increasing the overall quantum of the fee payable. Accordingly, the amendment does not result in any increase in the total fee burden; rather, it streamlines and rationalizes the fee structure on an annual basis. In view of the above, the suggestion to adopt a phased or tiered fee structure is not considered necessary at present. |
| 13 | Listing of TPAs Feedback: The draft proposed a comprehensive framework for the listing of TPAs. Stakeholders raised comments on various aspects of the proposed framework, including the requirement for intimation of listing, prior approval of the Authority for transfer of shareholding exceeding five per cent, and intimation of changes in the shareholding pattern of TPAs. | Provision omitted. Upon consideration of the feedback received, it has been felt appropriate to defer the proposed provisions relating to the listing of TPAs. Since the issue of listing is not unique to TPAs and may equally arise in respect of other categories of insurance intermediaries, it has been considered appropriate to examine the matter holistically with a view to developing a uniform regulatory framework governing the listing of all categories of intermediaries. |
| 16(1)(r) | Cancellation of Registration: It was suggested that the ground for cancellation be aligned with the language of the statute by expressly specifying the relevant ground, instead of making a general reference to non-compliance with Section 42D(6) of the Insurance Act, 1938. | Feedback Accepted. The clause has been reworded to align with the language of Section 42D(6) of the Insurance Act, 1938, by providing that the Certificate of Registration may be cancelled where the TPA commits any contravention or default specified under sub-section (6) of Section 42D. |
