IFSCA Proposes Amendment to Align “Premium” Definition With Insurance Act

The International Financial Services Centres Authority (IFSCA) issued a consultation paper proposing amendments to the International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) Regulations, 2022. The proposal follows the enactment of the Sabka Bima Sabki Raksha (Amendment of the Insurance Laws) Act, 2025, which introduced a new definition of “premium” under Section 2(13BC) of the Insurance Act, 1938. Since the provisions of the Insurance Act apply to IFSC jurisdictions under Section 13 of the IFSCA Act, 2019, IFSCA stated that corresponding amendments may be required in its insurance regulatory framework. Accordingly, the Authority proposed substituting the existing definition of “premium” in the 64\TB Regulations with the definition provided under the Insurance Act, 1938. The draft amendment regulations were placed for public consultation on the IFSCA website, and stakeholders were invited to submit comments and suggestions by June 2, 2026 through email in MS Word or Excel format. The proposed amendment would come into force upon publication in the Official Gazette.

International Financial Services Centres Authority

CONSULTATION PAPER ON PROPOSED

International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026

Objective:

The objective of this consultation paper is to seek comments / views/ suggestions from public on the proposed amendments to the definition of premium as provided in International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026 (hereinafter referred to as 64\TB Regulations).

Background:

1. The Sabka Bima Sabki Raksha (Amendment of the Insurance Laws) Act, 2025 [SBSR Act 2025] was notified on 21-Dec-2025. This notification resulted into amendment / modification to various provisions of the Insurance Act, 1938.

2. It is noted that the definition of ‘premium’ has been newly inserted under Section 2 (13BC) of the Insurance Act, 1938 (4 of 1938) (hereinafter referred to as Principal Act).

3. As per Sec. 13 of the IFSCA Act, 2019, the provisions of the Principal Act are also applicable in the IFSC jurisdiction. Thus, amendments to above laws may have implications on IFSCA’s extant regulatory framework on insurance.

4. Accordingly, it is proposed to amend 64\TB regulations by substituting the existing definition of “premium” under these regulations, with the same meaning as assigned to it as per the Principal Act.

Public Consultation :

5. In view of the above, draft amendment to the 64\TB regulations is placed on the website of the IFSCA at https://ifsca.gov.in/PublicConsultation. General public and stakeholders are requested to forward their comments / suggestions through e-mail to Division of Insurance Regulations (DoIR), IFSCA at insurance-dept@ifsca.gov.in, with copy to Mr. Bhaskar Khadakbhavi at khadakbhavi@ifsca.gov.in, and Mr. Sachin Budhawant at sachin.budhawant@ifsca.gov.in, by 02^nd June, 2026 in the attached format. It is further requested to provide comments in MS Word or MS Excel format only.

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INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY

DRAFT NOTIFICATION

Gandhinagar, the XX June, 2026

DRAFT – International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026

IFSCA/2026-27/GN/REGxxx — In exercise of the powers conferred by sub-section (1) of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act, 2019 read with clause (zaa) of sub-section (2) of section 114A of the Insurance Act, 1938, the International Financial Services Centres Authority hereby makes the following amendments to the International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026 namely:-

1. Short title and commencement: –

(1) These Regulations may be called the International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026;

(2) They shall come into force from the date of their publication in the Official Gazette.

2. Clause (f) of sub-regulation (1) of regulation 3 shall be substituted as under –

“‘premium’ shall have the same meaning as assigned to it under sub-section 13BC of section 2 of the Insurance Act, 1938 (4 of 1938);”.

K. Rajaraman, Chairperson

[ADVT.-III/4/Exty./xxx/2026-27]

Note: The International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) Regulations, 2022 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2022-23/GN/REG032 on 13^th January, 2023.

Format for providing comments / suggestions

Proposed –

International Financial Services Centres Authority (Manner of Payment and Receipt of Premium) (Amendment) Regulations, 2026

Inputs / Comments suggested by:

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