The proposed regulations are being introduced in line with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which mandates public consultation, periodic review of regulations and stakeholder engagement in the regulatory process.
Hyderabad:The Insurance Regulatory and Development Authority of India (IRDAI) has proposed the IRDAI (Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2026, aimed at establishing a transparent, structured and consultative framework for framing regulations and issuing subsidiary instructions.
The proposed regulations are being introduced in line with the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which mandates public consultation, periodic review of regulations and stakeholder engagement in the regulatory process. The framework seeks to operationalise these statutory provisions and align regulation-making with the revised provisions of the Insurance Act, 1938 and the IRDA Act, 1999.
Key features of the proposed regulations include principles governing regulation-making, public consultation mechanisms, economic impact assessment of draft regulations, consultation with the Insurance Advisory Committee, issuance of subsidiary instructions through consultative committees, periodic review and amendment procedures, as well as provisions for urgent regulations and subsidiary instructions.
The Insurance Act, 1938 and the IRDA Act, 1999 empower the IRDAI to frame regulations for carrying out the purposes of the respective statute.
The SBSR Act,2025 has introduced a statutory framework relating to regulation-making and issuance of subsidiary instructions including provisions for:
-Framing of regulations through a consultative process;
-Publication of draft regulations and invitation of public comments;
-Issuance of subsidiary instructions for procedural and clarificatory matters;
-Constitution of consultative committees; and
-Periodic review of regulations.
Accordingly, it is considered necessary to introduce a regulatory framework to operationalise these provisions and standardise the process of making, amendment and review of regulations and issuance of subsidiary instructions.
The proposed regulations intend to codify the principles of stakeholder engagement, public consultation and publication of draft exposures which have so far been followed as established regulatory practices to create a structured framework for the same.
Key Features of the Proposed Regulations:
The proposed regulations prescribe broad principles that may be considered while framing regulations and provide for a transparent public consultation framework requiring publication of draft regulations to enhance stakeholder participation.It also empowers the IRDAI to undertake economic analysis of proposed regulations,including assessment of costs and benefits proportionate with the IRDAI’s statutory objectives.
The proposed regulations empower the IRDAI to establish additional consultation mechanisms to add domain expertise to examine the regulatory proposals.
It provides to prioritise policyholder protection through consultative mechanism in regulation making and balancing accountability with protection of policyholder interests
The proposed framework also seeks to review of regulatory effectiveness.