To further strengthen policyholder protection, the IRDAI has also approved amendments to the regulations governing insurance intermediaries.A key reform is the mandatory tagging of the authorised sales person to every insurance proposal, policy and certificate of insurance. The requirement enhances accountability and traceability across the insurance distribution process, strengthens regulatory oversight and promotes greater transparency for policyholders.
Hyderabad: In its board 137th meeting on Tuesday chaired by chairman Ajay Seth, insurance regulator IRDAI has finally approved a license for ProTec General Insurance, a joint venture between the M Pallonji Group and True North’s Divya Sehga, enabling the company to undertake general insurance business.
ProTec is led by Aditya Sharma, co-founder and managing director & CEO.
This marks the fourth registration granted by IRDAI during the calendar year 2026, comprising two general insurers, one health insurer and one reinsurer, underscoring the strong investment interest in the Indian insurance sector and the positive momentum generated by the reforms ushered in under the SBSR Act.
The IRDAI in its 137th Meeting held on 28th July considered a range of regulatory, supervisory and developmental reforms aimed at strengthening the insurance sector and advancing the implementation of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (SBSR Act).
To further strengthen policyholder protection, the IRDAI has also approved amendments to the regulations governing insurance intermediaries.
A key reform is the mandatory tagging of the authorised sales person to every insurance proposal, policy and certificate of insurance. The requirement enhances accountability and traceability across the insurance distribution process, strengthens regulatory oversight and promotes greater transparency for policyholders.
The amendments also introduced perpetual registration supported by an annual fee
regime instead of periodic renewals, streamline regulatory compliance, align the framework
with the SBSR Act and the Foreign Investment Rules, while strengthening governance and
business conduct through enhanced disclosure and accountability requirements. These reforms reduce compliance burden, enhance accountability and enable intermediaries, third-partyadministrators and surveyors to focus on delivering better and more accessible services to policyholders.
The IRDAI also noted encouraging progress in implementing the capital reforms introduced under the SBSR Act. Pursuant to the amended legal framework permitting up to 100 per cent foreign investment in insurers, two insurers (one life insurer and one general insurer) have already increased foreign shareholding beyond the earlier threshold of 74 per cent, signalling enhanced investor confidence, facilitating greater capital inflows and reaffirming India’s attractiveness as a preferred destination for long-term investment in the insurance sector.
The insurance regulator reaffirmed its commitment to expeditious implementation of the reforms envisaged under the SBSR Act to promote sustainable growth of the insurance sector, strengthen policyholder protection, facilitate innovation, attract long-term investment, and further enhance ease of doing business through a balanced and responsive regulatory
framework.
Supporting growth of the insurance sector, the IRDAI approved key amendments through
the IRDAI (Actuarial, Finance and Investment Functions of Insurers) (Second
Amendment) Regulations, 2026 and the IRDAI (Registration, Capital Structure, Transfer
of Shares and Amalgamation of Insurers) (Amendment) Regulations, 2026. These reforms
provide insurers with greater operational and financial flexibility through liberalised
investment norms, a facilitative framework for capital infusion and corporate restructuring, and streamlined provisions relating to transfer of shares and amalgamations while strengthening actuarial oversight and financial governance.
Together, these measures improve ease of doing business, facilitate capital formation, enhance financial resilience and support the long-term growth of insurers without compromising policyholder interests, said the IRDAI.
A major policyholder-centric reform approved by the regualtor is the IRDAI (Policyholders’
Education and Protection Fund) Regulations, 2026, which operationalise the
Policyholders’ Education and Protection Fund (PEPF) constituted under Section 16A of
the IRDA Act, 1999, as introduced by SBSR Act.
The PEPF establishes a dedicated institutional mechanism to promote insurance awareness and literacy initiatives, strengthen grievance redressal mechanisms, leverage technology to improve policyholder services, facilitate tracing and recovery of unclaimed insurance amounts, and support other initiatives aimed at empowering and safeguarding policyholders.
Also strengthening regulatory certainty and reinforcing trust in the supervisory framework, the IRDAI approved the IRDAI (Manner and Procedure for Imposition of Penalties)
Regulations, 2026, establishing a transparent, uniform and proportionate framework for
enforcement under the Insurance Act, 1938 and the IRDA Act, 1999.
The regulations now provide a structured process for initiation of proceedings, issuance of show-cause notices and passing of reasoned orders, thereby promoting consistency, fairness and transparency in regulatory actions.The framework enhances regulatory certainty for regulated entities while strengthening accountability and public confidence in the insurance sector.