Insurance

Insurance Ombudsman and the Case for Consent-Based Mediation

Summary: The Ministry of Finance published the Draft Insurance Ombudsman (Amendment) Rules, 2025 (“Draft IO Amendment Rules”), for public consultation in November 2025, which continue to remain in draft form. The Draft IO Amendment Rules proposed significant amendments to the current regime, including digitisation measures, enhanced penalties, and establishment of an appellate authority to entertain appeals against awards passed by the Ombudsman. We revisit the basic principles regime, with mediation as its cornerstone, highlight areas of ambiguity, and analyse the direction of Draft IO Amendment Rules are taking.

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IRDAI sets up performance scorecard for KMPs: A case for indirect enforcement

The IRDAI published a circular on Remuneration to Key Management Persons, dated May 25, 2026 (“Circular”). This was soon after a concept paper revisiting the remuneration of Key Managerial Personnel (“KMP”) of Indian insurers was shared among a select group of stakeholders, inviting their comments. The Circular, which is now applicable law, amends the IRDAI Master Circular on Corporate Governance for Insurers, 2024 (“Master Circular”). The Circular has been issued in exercise of powers under Section 34 of the Insurance Act, 1938, Section 14 of the IRDA Act, 1999, and Regulation 12 of the Regulations.

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Amended Cyber Security Guidelines for Insurance Sector: Key Amendments and What They Mean for Regulated Entities

Summary: On April 6, 2026, IRDAI issued certain amendments to its 2023 Information and Cyber Security Guidelines for insurance sector, while retaining the core structure of the guidelines. This article covers the key changes to the guidelines and their implications for regulated entities such as expanded Board accountability, introduction of IT Steering Committee, enhanced independence of CISO, and targeted relaxations for Foreign Reinsurance Branches etc

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API Integration in Insurance: Unlocking Digital Policy Distribution

Summary: This article examines the increasing use of Application Programming Interfaces (“APIs”) in the insurance sector and their role in enabling embedded and digital distribution models. It discusses how API platforms are integrated for distribution of insurance products with third-party digital platforms, offering coverage at the point of transaction. The article also highlights the key legal and operational considerations arising from such arrangements and outlines the regulatory framework under the Insurance Act, 1938.

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Directors and Officers Liability Insurance Policy in India: Key Practical Considerations

Summary: This blog provides a comprehensive overview of Directors and Officers Liability Insurance policies in India, highlighting their coverage structure and associated nuances. It examines critical practical considerations, including knowledge attribution, coverage for past officers, fraud exclusions and the importance of truthful disclosures. It seeks to guide individuals on their rights as policyholders and aid them in entering into new policies or renegotiating their existing policies.

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Insurance Distribution in India: Emerging Channels, Compliance, and Data Governance

Summary: This continuation of Part I delves into the evolving insurance distribution landscape in India, focusing on other channels such as web aggregators, insurance marketing firms, and common service centres, alongside traditional intermediaries like PoSPs, MISPs, and agents. It highlights regulatory prohibitions that safeguard ethical practices, policyholder-centric reforms under the IRDAI framework, and the impact of the Digital Personal Data Protection Act on intermediaries. The article underscores how compliance, transparency, and data security are shaping a future-ready distribution ecosystem that balances innovation with consumer trust.

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Understanding Insurance Distribution in India: A Comprehensive Guide

Summary: This blog provides an overview of India’s insurance distribution framework, explaining the roles of intermediaries like brokers, corporate agents, TPAs, and surveyors under IRDAI regulations. It highlights recent reforms introduced by the Insurance Amendment Bill, 2025, which aim to simplify compliance, expand intermediary definitions, and strengthen policyholder protection. Understanding these evolving rules is crucial for insurers, intermediaries, and stakeholders to navigate the market effectively and ensure transparent, compliant distribution.

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Investment Functions of Insurers and Insurance Brokers: On A Short Rope or Ample Wiggle Room?

Summary: This blog broadly outlines the IRDAI’s prescriptive investment framework for insurers, permissible asset classes thereunder, limited applicability to insurance brokers, and the regulatory intent behind these norms. It also highlights proposed amendments to the investments regulatory framework, granting insurers greater flexibility to invest in private companies while maintaining governance safeguards. For comprehensive, insurer-specific, or instrument-specific details, it is important to refer to the full text of IRDAI’s investments regulatory framework.

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IRDAI Regulatory Reform Series: Rural, Social Sector, and Motor Third-Party Obligations

The Insurance Act, 1938 (“Insurance Act”), includes special provisions obligating insurers to mandatorily source a part of their business from persons residing in rural areas; workers in the unorganised or informal sector, or from economically vulnerable or backward classes of the society.[1] Insurers are also required to underwrite a minimum percentage of insurance business for third-party motor insurance policies, both under the Insurance Act[2] as well as the Motor Vehicles Act, 1988 (“MV Act”).[3] These requirements were, until recently, implemented through two distinct regulations issued by the Insurance Regulatory and Development Authority of India (“IRDAI”) – the IRDAI (Obligation of Insurer to Rural and Social sector) Regulations, 2015 (“RSO Regulations”), and the IRDAI (Obligation of Insurer in Respect of Motor Third Party Insurance Business) Regulations, 2015 (“MTP Regulations”).

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