REGISTERED NO. DL—(N)04/0007/2003—25
jftLVªh lañ Mhñ ,yñ—¼,u½04@0007@2003—25
xxxGIDHxxx
xxxGIDExxx
vlk/kkj.k
EXTRAORDINARY
Hkkx II — [k.M 1
PART II — Section 1
izkf/kdkj ls izdkf'kr
PUBLISHED BY AUTHORITY
lañ 64]
ubZ fnYyh] jfookj] fnlEcj 21] 2025@vxzgk;.k 30] 1947 ¼'kd½
No. 64] NEW DELHI, SUNDAY, DECEMBER 21, 2025/AGRAHAYANA 30, 1947 (Saka)
bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 21st December, 2025/Agrahayana 30, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
20th December, 2025 and is hereby published for general information:—
THE SABKA BIMA SABKI RAKSHA (AMENDMENT OF
INSURANCE LAWS) ACT, 2025
No. 40 of 2025
[20th December, 2025.]
An Act further to amend the Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and the Insurance Regulatory and Development
Authority Act, 1999.
BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India
as follows:—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Sabka Bima Sabki Raksha (Amendment of
Insurance Laws) Act, 2025.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
Short title and
commencement.
सी.जी.-डी.एल.-अ.-21122025-268698
CG-DL-E-21122025-268698
सी.जी.-डी.एल.-अ.-21122025-268698
CG-DL-E-21122025-268698
2
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
2
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Construction of
references of
certain
expressions by
certain other
expressions.
Amendment of
section 2.
CHAPTER II
AMENDMENTS TO THE INSURANCE ACT, 1938
2. Throughout the Insurance Act, 1938 (hereafter in this Chapter referred to as
the principal Act),––
(a) for the words “business of insurance”, wherever they occur, the
words “insurance business” shall be substituted;
(b) with respect to the term “insurer”, wherever it occurs, for the
consequential terms, in respect of the same like “he, him or his”, the words “it
or its” shall be substituted;
(c) for the words “intermediary or insurance intermediary”, wherever
they occur, the words “insurance intermediary” shall be substituted.
3. In section 2 of the principal Act,—
(i) in clause (3),––
(a) in sub-clause (ii), for the words “or city improvement trust in
any presidency town;”, the word “; and” shall be substituted;
(b) sub-clause (iv) shall be omitted;
(ii) in clause (4A), for the words, brackets and figures “sub-section (1)
of section 5 of the Banking Companies Act, 1949”, the words and figures
“section 5 of the Banking Regulation Act, 1949” shall be substituted;
(iii) in clause (5),—
(a) the words and figures “or a provident society as defined in
Part III” shall be omitted;
(b) for the words “or provident society”, the words “or any person
authorised by it” shall be substituted;
(iv) after clause (5), the following clause shall be inserted, namely:—
‘(5A) “class of insurance business” means the class of––
(a) life insurance business;
(b) general insurance business;
(c) health insurance business;
(d) re-insurance business; or
(e) such other class of insurance business as may be notified
by the Central Government in consultation with the Authority from
time to time;’;
(v) for clause (6C), the following clauses shall be substituted,
namely:—
‘(6C) “health insurance business” means the business of effecting
the contracts of insurance that provide sickness benefits or pay for
medical and health expenses and includes,––
(i) the personal accident insurance business of effecting the
contracts of insurance that provide for payment of money in the
event of death, disablement or hospitalisation arising out of an
accident; and
4 of 1938.
10 of 1949.
10 of 1949.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
3
18 of 2013.
42 of 2002.
2 of 1912.
39 of 2002.
(ii) the travel insurance business of effecting the contracts of
insurance that provide for sickness benefits or pay for medical and
health expenses or payment of money in the event of death,
disablement or hospitalisation arising out of an accident or for
losses suffered, in the course of travel;
(6D) “insurance business” means the business of effecting
insurance contracts and includes any other form of contract as may be
notified by the Central Government in consultation with the Authority
from time to time.
Explanation.––In this clause, the expression “insurance contract”
means the contract whereby the insurer, on payment of premium,
undertakes to assume risk and to pay to the insured person an agreed
compensation for loss, damage or liability arising from a contingent event
on such terms and conditions and subject to such limitations as may be
agreed;’;
(vi) for clause (7A), the following clause shall be substituted,
namely:—
‘(7A) “Indian insurance company” means an insurer which is a
company formed and registered under the Companies Act, 2013, as a
public company and whose sole purpose is to carry on life insurance
business or general insurance business or re-insurance business or
health insurance business;’;
(vii) for clause (8A), the following clause shall be substituted,
namely:—
‘(8A) “insurance co-operative society” means an insurer being a
co-operative society formed and registered on or after the
commencement of the Insurance (Amendment) Act, 2002, as a
co-operative society under––
(a) the provisions of the Co-operative Societies Act, 1912;
(b) any other law for the time being in force in any State
relating to co-operative societies; or
(c) the provisions of the Multi-State Co-operative Societies
Act, 2002,
and whose sole purpose is to carry on life insurance business or
general insurance business or health insurance business in India;’;
(viii) for clause (9), the following clause shall be substituted, namely:—
‘(9) “insurer” means a person who carries on insurance business;’;
(ix) for clause (10B), the following clause shall be substituted,
namely:—
‘(10B) “insurance intermediary” includes––
(a) insurance brokers;
(b) re-insurance brokers;
(c) insurance consultants;
(d) corporate agents;
(e) third party administrator;
(f) surveyors and loss assessors;
4
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
4
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Amendment of
section 2C.
(g) managing general agents;
(h) insurance repositories; and
(i) such other entities, as may be notified by the Authority
from time to time;’;
(x) in clause (13BA), for the word, figures and letters “section 10FB”,
the word and figures “section 408” shall be substituted;
(xi) in clause (13BB), for the words, brackets, figures and letters
“sub-section (1) of section 10FR”, the word and figures “section 410” shall be
substituted;
(xii) after clause (13BB), the following clause shall be inserted,
namely:—
‘(13BC) “premium” means the amount paid or payable
as consideration to the insurer by the policyholder for a contract
of insurance;’;
(xiii)
after clause (14), the following clause shall be inserted,
namely:—
‘(14A) “principal officer” means an officer of an insurer,
authorised as such for the purposes of this Act;’;
(xiv) in clause (16), for the word, brackets and figures “clause (72)”, the
word, brackets and figures “clause (71)” shall be substituted.
4. In section 2C of the principal Act,—
(a) in sub-section (1),––
(i) in clause (b), after the words “relating to co-operative
societies”, the words and figures “or the Multi-State Co-operative
Societies Act, 2002” shall be inserted;
(ii) after clause (b), the following clause shall be inserted,
namely:—
“(ba) a statutory body established by an Act of Parliament
for time being in force to carry on insurance business; or”;
(iii) for clause (c), the following clause shall be substituted,
namely:—
“(c) a company or a body established or incorporated under
a law of any country outside India and engaged in re-insurance
business that establishes a branch in India for the purpose of
re-insurance business exclusively and includes Lloyd’s established
under the Lloyd’s Act, 1871 (United Kingdom) or any of its
Members:”;
(iv) after the third proviso, the following proviso shall be inserted,
namely:—
“Provided also that no company or a body established or
incorporated under a law of any country outside India shall carry
on any class of insurance business, other than re-insurance:”;
(v) in the fourth proviso, for the words, brackets and letter “an
insurer, being an Indian Insurance Company, insurance co-operative
society or, a body corporate referred to in clause (c) of this sub-section
carrying on the business of insurance”, the words “that an
insurer carrying on insurance business” shall be substituted;
39 of 2002.
34 of 1871
(UK).
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
5
18 of 2013.
28 of 2005.
28 of 2005.
(b) after sub-section (3), the following sub-sections shall be inserted,
namely:—
“(4) No person other than an insurer shall use as part of its name
or in connection with its business any of the words “insurance”,
“insurer”, “assurance”, “re-insurance”, “insurance company” or any of
their derivatives and no person shall carry on the insurance business in
India unless it uses as part of its name at least one of such words, as may
be specified by the regulations.
(5)
An insurance intermediary may only use the words
“insurance”, “assurance”, or “insurance company” to indicate the nature
of its organisation and services as an insurance intermediary, in
accordance with the regulations.
(6) An association of insurers or insurance intermediaries formed
for the protection of their mutual interests and registered under the
Companies Act, 2013 or any other applicable law may only use the
words “insurance”, “assurance”, or “insurance company” to indicate the
nature of its organisation, purposes and services, in accordance with the
regulations.”.
5. In section 2CA of the principal Act,—
(i) in the marginal heading, after the words “Special Economic Zones”,
the words “and International Financial Services Centres set up in Special
Economic Zones” shall be inserted;
(ii) for clauses (a) and (b), the following clauses shall be substituted,
namely:—
“(a) shall not apply to an insurer or insurance intermediary in any
Special Economic Zone including International Financial Services
Centres, set up under the provisions of the Special Economic Zones
Act, 2005;
(b) shall apply to the insurer or insurance intermediary in any
Special Economic Zone including International Financial Services
Centres, set up under the provisions of the Special Economic Zones
Act, 2005, with such exceptions, modifications and adaptations as may
be specified in the notification.”.
6. In section 3 of the principal Act,—
(i) for sub-sections (2) and (2A), the following sub-sections shall be
substituted, namely:—
“(2) Every application for registration shall be in such form,
manner and be accompanied by such documents and by such fee as may
be specified by the regulations.
(2A) On receipt of an application for registration under
sub-section (2), the Authority may, if satisfied after such inquiry as it
may deem necessary, that,—
(a) the financial condition and the general character of
management of the applicant are sound;
(b) the projected volume of business, the capital structure and
earning prospects of the applicant shall be adequate;
(c) the interest of the general public shall be served, if the
certificate of registration is granted to the applicant; and
Amendment of
section 2CA.
Amendment of
section 3.
6
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
6
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Insertion of new
section 3AA.
Foreign
investment in
equity.
Amendment of
section 6.
Amendment of
section 6A.
(d) the applicant has complied with the provisions of this
Act, as may be applicable and all other conditions as may be
specified by the Authority,
register the applicant as an insurer and grant it a certificate of
registration.”;
(ii) in sub-section (3), for the words, brackets, letter and figures
“sub-clause (d) of clause (9) of section 2”, the words, brackets, letters and
figures “clause (c) of sub-section (1) of section 2C” shall be substituted;
(iii) in sub-section (5C), the words, brackets, figures and letter “or has
had an application under sub-section (4) of section 3A accepted,” shall be
omitted;
(iv) in sub-section (5D), for the word “Court”, wherever it occurs, the
words “National Company Law Tribunal” shall be substituted.
7. After section 3A of the principal Act, the following section shall be inserted,
namely:—
“3AA. On and from the date of commencement of the Sabka Bima Sabki
Raksha (Amendment of Insurance Laws) Act, 2025, the aggregate holdings of
equity shares by foreign investors including portfolio investors in an
Indian insurance company may extend up to one hundred per cent. of the
paid-up equity capital and the foreign investment by such investors shall be
subject to such conditions and such manner as may be prescribed.
Explanation.––For the removal of doubts, it is hereby clarified that the
foreign direct investment in an Indian insurance company may extend up
to one hundred per cent. to accelerate the growth in the insurance sector.”.
8. In section 6 of the principal Act,––
(i) in sub-section (1), for the words, brackets, letter and figures
“sub-clause (d) of clause (9) of section 2”, the words, brackets, letters and
figures “clause (c) of sub-section (1) of section 2C” shall be substituted;
(ii) for sub-section (2), the following sub-section shall be substituted,
namely:––
“(2) No insurer referred to in clause (c) of sub-section (1) of
section 2C, shall be registered unless it has net owned fund of not less
than one thousand crore rupees.”.
9. In section 6A of the principal Act,—
(a) in sub-section (1), for the words “life insurance business or general
insurance business or health insurance business or re-insurance business”, the
words “insurance business” shall be substituted;
(b) in sub-section (4),—
(i) for the words “life insurance business, general and health
insurance business and re-insurance business”, the words “insurance
business” shall be substituted;
(ii) in clause (b), in sub-clause (iii), for the words “one per cent.”,
the words “five per cent.” shall be substituted;
(c) in sub-section (11), in clause (i), for the words, brackets and figures
“sub-sections (1), (3), (5) and (6)”, the words, brackets and figures
“sub-sections (1) and (5)” shall be substituted.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
7
10. In section 6B of the principal Act, in sub-section (1), for the words “life or
general or health insurance or re-insurance business”, the words “insurance
business” shall be substituted.
11. In section 10 of the principal Act, in sub-section 2,––
(a) the words, brackets and figure “sub-section (1) of” shall be omitted;
(b) for the word “Controller”, the word “Authority” shall be substituted;
(c) in the first proviso, the words, brackets and letter, “clause (a) of”
shall be omitted.
12. In section 11 of the principal Act, in sub-section (1), after the words
“a revenue account”, the words “and other financial statements” shall be inserted.
13. After section 12 of the principal Act, the following section shall be
inserted, namely:—
“12A. The eligibility criteria and experience for appointment of an
Actuary by an insurer and the powers and functions of the Actuary shall be
such as may be specified by the regulations.”.
14. In section 13 of the principal Act,—
(i) for the marginal heading, the following marginal heading shall be
substituted, namely:––
“Actuary report.”;
(ii) for sub-sections (1) and (2), the following sub-sections shall be
substituted, namely:—
“(1) In every financial year, every insurer shall cause an
investigation to be made by an Actuary into the financial condition of the
business carried on by it including the valuation of its liabilities in
respect thereto and shall cause a report of such Actuary to be made for such
purpose and in such manner as may be specified by the regulations.
(1A) The Authority may, having regard to the circumstances of
any particular insurer, allow the insurer to have the investigation made
at a date not later than two years from the date on which the
previous investigation was made.
(2) The provisions of sub-section (1) regarding the making of a
report shall apply to an investigation into the financial condition of the
insurer made with a view to the distribution of profits or an
investigation made for any such purpose as the Authority may
determine.”;
(iii) in sub-sections (3) and (4), for the word “abstract”, the word
“report” shall be substituted;
(iv) sub-section (6) shall be omitted.
15. For section 14 of the principal Act, the following sections shall be
substituted, namely:––
“14. (1) Every insurer, in respect of all business transacted by him, shall
maintain—
(a) a complete record of policies which shall contain all details of
the policy application, policy contract and other relevant and connected
information including,––
Amendment of
section 6B.
Amendment of
section 10.
Amendment of
section 11.
Insertion of new
section 12A.
Appointment of
Actuary by
insurer.
Amendment of
section 13.
Substitution of
new sections for
section 14.
Record of
policies and
claims.
8
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
8
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Processing of
information of
policyholders
by insurers or
other regulated
entities of
Authority.
(i) in respect of every policy issued by the insurer to an
individual, the name, date of birth, address and (where available)
email address of the policyholder, Aadhaar number or Permanent
Account Number or such other identification number issued by
any Central Authority for the purpose of unique identification of
the individual, the date when the policy was effected and a record
of any transfer, assignment or nomination of which the insurer has
notice and any other information which the Authority shall specify
from time to time;
(ii) in respect of every policy issued by the insurer
to any entity, the name, date of incorporation, address and email
address, registration number or Permanent Account Number or
such other identification
number issued by any Central
Authority for the purpose of unique identification of such entity,
the date when the policy was effected and a record of any
transfer, assignment or nomination of which the insurer has notice
and any other information which the Authority shall specify from
time to time;
(b) a record of claims, every claim made together with the date of
the claim, the name and address of the claimant and the date on which
the claim was discharged, or, in the case of a claim which is rejected, the
date of rejection and the grounds thereof; and
(c)
a record of policies and claims in accordance with
clauses (a) and (b) may be maintained in such form, including electronic
mode, as may be specified by the regulations.
(2) Every insurer shall, in respect of all business transacted by him,
endeavour to issue policies above a specified threshold in terms of sum assured
and premium in electronic form, in such manner and form as may be specified
by the regulations.
(3) Every insurer shall on a concurrent basis, submit to the Authority or
any entity regulated and authorised by the Authority, the record of policies as
stated in clauses (a), (b) and (c) of sub-section (1) in the manner and the details
as may be specified by the regulations.
14A. (1) The Authority may direct the insurers or other regulated entities
of the Authority to process the Know Your Customer (KYC) information of
the policyholders and the information and documents processed during the
solicitation or subsequently, shall be in such form and manner, as may be
specified by the regulations for the purposes of this Act and any other law for
the time being in force.
(2) The processing of the Know Your Customer (KYC) information of
the policyholder and the information and documents processed during the
solicitation or subsequently by the insurers or other regulated entities of the
Authority shall be deemed to be valid for the performance of their functions
under this Act or any other law for the time being in force.
(3) The insurers or the other regulated entities of the Authority shall use
the Know Your Customer (KYC) information of the policyholder and the
information and documents processed during the solicitation or subsequently
received in this section solely for the efficient discharge of its duties under
this Act.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
9
14B. An insurer or other regulated entities of the Authority in possession
or control of information of the policyholders, shall take such steps, as may be
specified by the regulations, to ensure that the information of the policyholders
maintained by such insurers or other regulated entities is accurate, complete
and updated in all respects, secure and duly protected against any loss or
unauthorised access or use, or unauthorised disclosure thereof.
14C. (1) Subject to any other law for the time being in force, insurers
and other regulated entities of the Authority shall ensure that the Know Your
Customer (KYC) information of the policyholders and the information and
documents processed during the solicitation or subsequently during all times
are maintained with utmost confidentiality and would be comprehensively
protected.
(2) Subject to sub-section (1), the said information shall not be parted or
shared with any third party, except,—
(a) where disclosure is compulsory in law;
(b) where there is duty to the public to disclose; or
(c) where the disclosure is made with the express consent of the
customer.”.
16. For section 15 of the principal Act, the following section shall be
substituted, namely:—
“15. The audited accounts and statements referred to in section 11 or
sub-section (5) of section 13 and the statement referred to in section 13 shall
be furnished to the Authority in such form and manner as may be specified by
the regulations within a period of six months from the end of the period to
which they refer.”.
17. In section 21 of the principal Act, in sub-section (1), in clause (d), the
words, figures and letters “or section 28A or section 28B” shall be omitted.
18. In section 22 of the principal Act, in sub-section (2), the words, brackets
and figures “of sub-sections (1) and (2) of” shall be omitted.
19. In section 26 of the principal Act, the words, brackets and letter “referred
to, and, where the alteration affects the assured rates, advantages, terms and
conditions offered in connection with life insurance policies the actuarial certificate
referred to in clause (f) of the said sub-section shall accompany the particulars of
the alteration” occurring at the end, shall be omitted.
20. For section 27 of the principal Act, the following section shall be
substituted, namely:—
‘27. (1) Every insurer shall, in order to meet its liabilities, invest and at
all times keep invested assets of value not less than that of the liabilities in the
following manner, namely:––
(a) in case of an insurer carrying on life insurance business––
(i) twenty-five per cent. of the said assets in Government
securities;
(ii) a further sum equal to not less than twenty-five per cent.
of the said sum in Government securities or other approved
securities; and
Accuracy and
security of
information of
policyholders.
Confidentiality
of information of
policyholders.
Substitution of
new section for
section 15.
Submission of
returns.
Amendment of
section 21.
Amendment of
section 22.
Amendment of
section 26.
Substitution of
new section for
section 27.
Investment of
assets.
10
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
10
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
(iii) the balance, in any of such approved investments, with
such limitations, conditions and restrictions as may be specified by
the regulations;
(b) in the case of an insurer carrying on insurance business, other
than life insurance business––
(i) twenty per cent. of the said assets in Government
securities;
(ii) a further sum equal to not less than ten per cent. of the said
sum in Government securities or other approved securities; and
(iii) the balance, in any of such approved investments, with
such limitations, conditions and restrictions as may be specified by
the regulations:
Provided that an insurer may, subject to such conditions as
may be specified by the regulations, invest or keep invested any
part of its controlled funds or assets otherwise than in approved
investments, if such investments do not exceed fifteen per cent. of
the assets referred to in this sub-section.
(2) The investment of the whole or any part of the assets of the insurer
shall be subject to—
(a) the condition that the assets referred to in sub-section (1) shall
be held free of any encumbrance, charge, hypothecation or lien; and
(b) such limitations and conditions as may be specified by the
regulations:
Provided that nothing contained in this sub-section shall apply to
a repo or a reverse repo transaction or a Government securities lending
transaction undertaken in terms of the Reserve Bank of India Act, 1934
or directions issued thereunder.
(3) Subject to such terms and conditions as may be specified by the
regulations, an insurer may invest not more than five per cent. of the assets
referred to in sub-section (1), by value, in a company or other body corporate
which is owned or controlled by the promoters.
(4) Nothing contained in this section shall be deemed to affect in any
way, the manner in which any money relating to the provident fund of any
employee or to any security taken from any employee or other moneys of a
like nature are required to be held by or under any Central Act or State Act for
the time being in force.
(5) The assets being invested by an insurer incorporated or domiciled
outside India, except to the extent of any part thereof which consists of foreign
assets held outside India, shall be held in India and in the trust for the discharge
of the liabilities and shall be vested in trustees resident in India and approved
by the Authority, and the instrument of such trust shall be executed by the
insurer, with the approval of the Authority, in such manner as may be specified
by the regulations.
(6) The Authority may, either generally or in any particular case, direct
that any investment shall, subject to such conditions as may be imposed, be
taken into account, in such manner as may be specified by the regulations, in
computing the assets referred to in sub-section (1), and where any direction
has been issued under this sub-section, the copies thereof shall be laid before
each House of Parliament as soon as may be after it is issued.
2 of 1934.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
11
(7) If, at any time, the Authority considers any one or more of the
investments of an insurer to be unsuitable or undesirable, the Authority may,
after giving the insurer an opportunity of being heard, direct it to realise the
investment or investments, and the insurer shall comply with the direction
within such time as may be specified by the regulations.
(8) Without prejudice to anything contained in this section, the Authority
may, in the interest of the policyholders, specify by the regulations, the time,
manner and other conditions of investment of assets to be held by an insurer
for the purposes of this Act.
(9) The Authority may give specific directions for the time, manner and
other conditions subject to which the funds of policyholders shall be invested
in the infrastructure and social sector, as may be specified by the regulations.
(10) The Authority may, after taking into account the nature of business
and to protect the interest of the policyholders, issue to an insurer the
directions relating to the time, manner and other conditions of investment of
assets to be held by it:
Provided that no direction under this sub-section shall be issued unless
the insurer concerned has been given an opportunity of being heard.
Explanation.—For the purposes of this section, the expressions—
(i) “assets” means all the assets of insurer at their carrying value
but does not include any assets specifically held against any fund or
portion thereof in respect of which the Authority is satisfied that such
fund or portion thereof, as the case may be, is regulated by the law of
any country outside India or miscellaneous expenditure or in respect of
which the Authority is satisfied that it would not be in the interest of the
insurer to apply the provisions of this section;
(ii) “controlled”, in relation to a company or other body corporate,
means the right to appoint majority of its directors or to control its
management or policy decisions exercisable by the promoters acting
individually or in concert, directly or indirectly, including by virtue of
shareholding or management rights or shareholders agreements or
voting agreements;
(iii) “controlled funds” mean,––
(a) in the case of any insurer carrying on life insurance
business––
(i) all its funds, if it carries on no other class of
insurance business;
(ii) all the funds in India appertaining to life insurance
business if it carries on some other class of insurance
business also:
Provided that the fund referred to in sub-clause (a)
shall not include any fund or portion thereof in respect of
which the Authority is satisfied that such fund or portion, as
the case may be, is regulated by the law in force of any
country outside India or it would not be in the interest of the
insurer to apply the provisions of this section;
(b) in the case of any other insurer carrying on life insurance
business––
(i) all its funds in India, if it carries on no other class of
insurance business;
12
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
12
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Omission of
sections 27A,
27B, 27C and
27D.
Amendment of
section 30.
Amendment of
section 31.
Amendment of
section 31A.
Substitution of
new section for
section 32A.
Prohibition of
common officers
and requirement
as to whole-time
officers.
(ii)
all the funds in India appertaining to life
insurance business, if it carries on some other class of insurance
business also, but does not include any fund or portion thereof
in respect of which the Authority is satisfied that such fund or
portion thereof, as the case may be, is regulated by the law in
force of any country outside India or in respect of which the
Authority is satisfied that it would not be in the interest of the
insurer to apply the provisions of this section;
(iv) “liabilities” means the net liabilities of the insurer to the
holders of policies;
(v) “owned”, in relation to a company, means the holding of more
than fifty per cent. of its paid-up share capital by the promoters, and
includes a subsidiary company of such a company; and
(vi) “promoter” means a person—
(a) who has been named as such in a prospectus inviting offers
from the public for the subscription or purchase of any securities of
an insurer, or is identified as such by the insurer in its annual returns
filed with the person having the duty of registering companies;
(b) who has control over the affairs of the insurer, directly or
indirectly whether as a shareholder, director or otherwise; or
(c)
in accordance with whose advice, directions or
instructions, the board of directors of the insurer is accustomed to
act but shall not apply to a person who is acting merely in a
professional capacity.’.
21. Sections 27A, 27B, 27C and 27D of the principal Act shall be omitted.
22. In section 30 of the principal Act, the figures and letters “27A, 27B, 27C,
27D”, occurring at both the places, shall be omitted.
23. In section 31 of the principal Act, in sub-section (1), for the word, brackets
and figure “sub-section (7)”, the word, brackets and figure “sub-section (5)” shall
be substituted.
24. In section 31A of the principal Act, in sub-section (1), for the portion
beginning with “no insurer shall after expiry of one year” and ending with “in
respect of the general insurance business of the insurer:”, the following shall be
substituted, namely:—
“no insurer shall, after expiry of one year from the date of
commencement of the Sabka Bima Sabki Raksha (Amendment of Insurance
Laws) Act, 2025, be directed or managed by a company or a firm or employ
as manager or officer or in any capacity, any person whose remuneration or
any part thereof is in the form of commission or bonus or a share in the
valuation surplus:”.
25. For section 32A of the principal Act, the following section shall be
substituted, namely:––
“32A. (1) A Director or officer of an insurer shall not be a Director or
officer of any other insurer carrying on the same class of insurance business
or of a Banking company or of an investment company.
(2) The Authority may, for such period, to such extent and subject to such
conditions as may be specified by the regulations, exempt from the operation of
this section, two or more such entities, for the purpose of facilitating their
amalgamation or the transfer of business of one insurer to another.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
13
41 of 1999.
18 of 2013.
(3) The provisions of sub-section (1) shall not apply to a Director
nominated by the Central Government.”.
26. In section 32B of the principal Act, for the words “life insurance business
and general insurance business”, the words “insurance business” shall be
substituted.
27. In section 32C of the principal Act, for the words “life insurance or general
insurance”, the word “insurance” shall be substituted.
28. In section 33 of the principal Act, in sub-section (6), in clause (a), after the
word “insurer”, the words “or insurance intermediary” shall be inserted.
29. In section 33A of the principal Act,—
(i) for the words “at it or he”, the words “as it” shall be substituted;
(ii) after the word “insurers”, the words “or insurance intermediaries”
shall be inserted.
30. In section 34 of the principal Act, for sub-section (1), the following
sub-section shall be substituted, namely:—
“(1) Where the Authority is satisfied that it is necessary or expedient,—
(a) in the public interest;
(b) to prevent the affairs of an insurer or insurance intermediary
being conducted in a manner detrimental to the interests of the
policyholders or in a manner prejudicial to the interests of the insurer or
insurance intermediary; or
(c) to secure the proper management of an insurer or insurance
intermediary,
it may issue such directions as it deems fit, to insurer or insurance intermediary
generally or in particular, including directions of disgorgement and such
insurer or insurance intermediary shall comply with such directions:
Provided that no such directions shall be issued to any insurer or
insurance intermediary in particular unless such insurer or insurance
intermediary has been given an opportunity of being heard.
Explanation.—For the removal of doubts, it is hereby clarified that the
power to issue directions under this section shall include and always be
deemed to have included the power to direct any person, who made profit or
averted loss by indulging in any transaction or activity in contravention of the
provisions of this Act and the Insurance Regulatory and Development
Authority Act, 1999 and rules or regulations made thereunder, to disgorge an
amount equivalent to the wrongful gain made or loss averted by such
contravention.”.
31. In section 34A of the principal Act, for sub-section (2), the following
sub-section shall be substituted, namely:—
“(2) Nothing contained in sections 196, 197 and 203 of the Companies
Act, 2013 shall apply to any matter in respect of which the approval of the
Authority is to be obtained under sub-section (1).”.
32. In section 34H of the principal Act, in sub-section (1),—
(i) in clause (a), for the word, brackets and figure “sub-section (2)”, the
word, brackets and figure “sub-section (3)” shall be substituted;
(ii) in clause (b), for the word, brackets, figure and letter “sub-section (1A)”,
the word, brackets and figure “sub-section (2)” shall be substituted;
(iii) for clause (c), the following clause shall be substituted, namely:––
Amendment of
section 32B.
Amendment of
section 32C.
Amendment of
section 33.
Amendment of
section 33A.
Amendment of
section 34.
Amendment of
section 34A.
Amendment of
section 34H.
14
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
14
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Amendment of
section 35.
Amendment of
section 37.
Amendment of
section 37A.
Amendment of
section 40.
“(c) a contravention of any provision of this Act or the Insurance
Regulatory and Development Authority Act, 1999 has been committed
or is likely to be committed by an insurer or insurance intermediary; or”;
(iv) in clauses (f) and (g), after the word “insurer”, occurring at both the
places, the words “or insurance intermediary” shall be inserted.
33. In section 35 of the principal Act,—
(a) for sub-section (1), the following sub-section shall be substituted,
namely:––
“(1) Notwithstanding anything contained in any other law for the
time being in force, no insurance business of an insurer or non-insurance
business of any company, shall be transferred to or amalgamated with the
insurance business of any other insurer except in accordance with a
scheme prepared under this section and approved by the Authority, subject
to the transferee insurer complying with the provisions of this Act at all
times and any other conditions as may be specified by the regulations.”;
(b) in sub-section (3),––
(i) in clause (b), for the words “insurance business of each of the
insurers”, the words “business of each of the entities” shall be substituted;
(ii) in clause (c), the word “life” shall be omitted;
(iii) in clause (e), after the words “was founded”, the words “or any
other document as may be required by the Authority” shall be inserted;
(iv) in the proviso,––
(A) for the word “insurer”, the word “party” shall be
substituted;
(B) for the words and figures “or sections 7 and 8 of the
Indian Life Assurance Companies Act, 1912”, the words “or any
other applicable law” shall be substituted;
(c) after sub-section (3), the following sub-section shall be inserted,
namely:––
“(4) Without prejudice to anything contained in sections 35, 36,
37, or 37A, the Authority may specify by regulations, the manner,
procedure and other conditions for a scheme of arrangement or
amalgamation or transfer of business for the purposes of this Act.”.
34. In section 37 of the principal Act,––
(a) for the words “two or more insurers”, the words “two or more
entities” shall be substituted;
(b) in clause (c), in sub-clause (i), for the portion beginning with “insurance
business of each of the insurer concerned” and ending with “Part-I of that
Schedule”, the words “business of each of the entities concerned in such
amalgamation or transfer, prepared in accordance with the regulations” shall be
substituted.
35. In section 37A of the principal Act, in sub-section (2), in the second
proviso, for the word “Controller”, the word “Authority” shall be substituted.
36. In section 40 of the principal Act, after sub-section (2), the following
sub-section shall be inserted, namely:—
“(2A) Without prejudice to anything contained in this section, the Authority
may in the interest of the policyholders, specify by the regulations, the limits of
any commission, remuneration or reward in any form payable to an insurance
agent or an insurance intermediary, the manner of such payment, the manner of
disclosures required and such other matters related to insurance agents or
insurance intermediaries as may be necessary, for the purposes of this Act.”.
41 of 1999.
6 of 1912.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
15
4 of 1999.
18 of 2013.
5 of 1972.
3 of 1956.
42 of 1999.
15 of 2002.
37. In section 40B of the principal Act, in the marginal heading, the word
“life” shall be omitted.
38. In section 40C of the principal Act, for the marginal heading, the following
marginal heading shall be substituted, namely:—
“Furnishing details of expenses of management by insurer.”.
39. In section 41 of the principal Act, in sub-section (1), in the proviso, for the
words “a policy of life insurance taken out by himself on his own life”, the words
“a policy of any class of insurance business taken out by himself in relation to risks
associated with his own life, health or property” shall be substituted.
40. In section 42D of the principal Act,—
(i) after sub-section (2), the following sub-section shall be inserted,
namely:––
“(2A) A person shall not begin to carry on or act as
an
insurance
intermediary,
unless
he
or
it
obtains
a
certificate of registration for the same from the Authority.”;
“(3) Every application for registration as an insurance intermediary
shall be in such form and manner and be accompanied by such
documents and fee as may be specified by the regulations.
(4) No application for the renewal of a registration under this
section shall be entertained, if the application does not reach the issuing
authority before the registration ceases to remain in force:
Provided that the Authority may, if satisfied that undue hardship
would be caused otherwise, accept any application on payment of late
fee of seven hundred and fifty rupees.
(4A) A registration made under this section shall remain in force
subject to payment of such annual fee as may be specified by the
regulations, until such registration is suspended or cancelled by the
Authority, in accordance with such procedure as may be specified by it
and the conditions referred to in sub-section (6).”;
(iii) for sub-sections (6), (7) and (8), the following sub-sections shall be
substituted, namely:––
“(6) The Authority may suspend or cancel the registration of an
insurance intermediary, if such insurance intermediary—
(i) contravenes any provision of this Act or the Insurance
Regulatory and Development Authority Act, 1999 or the rules or
regulations made thereunder or makes a default in complying with
any direction issued or order made;
(ii) makes a default in complying with, or acts in
contravention of, any requirement of the Companies Act, 2013 or
the General Insurance Business (Nationalisation) Act, 1972 or the
Life Insurance Corporation Act, 1956 or the Foreign Exchange
Management Act, 1999 or the Prevention of Money-laundering
Act, 2002;
(iii) is convicted for an offence under any law for the time
being in force;
Amendment of
section 40B.
Amendment of
section 40C.
Amendment of
section 41.
Amendment of
section 42D.
(ii) for sub-sections (3) and (4), the following sub-sections shall be
substituted, namely:––
16
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
16
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Amendment of
section 47.
Amendment of
section 48B.
Amendment of
section 49.
Amendment of
section 51.
Amendment of
section 52A.
(iv) having its holding company or a joint venture partner
having its principal place of business in a country outside India
that has been debarred by law or practice of such country to carry
on insurance intermediary business;
(v)
fails to pay the annual fee required under
sub-section (4A);
(vi) being a co-operative society set up under the respective
State laws or, as the case may be, the Multi-State Co-operative
Societies Act, 2002, contravenes the provisions of law as may be
applicable to the insurance intermediary;
(vii) no longer meets the requirements or is disqualified as
per sub-section (5); or
(viii) makes any other default or contravention, as may be
specified by the regulations.
(7) The manner of suspension or cancellation of registration of an
insurance intermediary shall be such as may be specified by the
regulations.
(8) The Authority may issue a duplicate certificate of registration
to replace a registration certificate which was lost, destroyed or
mutilated, or in any other case where the Authority is of opinion that
the issuance of duplicate certificate is necessary, it may issue the
same on payment of such fee as may be specified by the regulations.”;
(iv) sub-section (9) shall be omitted.
41. In section 47 of the principal Act, in sub-section (1),—
(i) for the words “life insurance maturing”, the words “insurance due”
shall be substituted;
(ii) for the words “title to the amount secured thereby or for any other
adequate reason”, the words “entitlement to receive the due payment” shall be
substituted.
42. In section 48B of the principal Act, in sub-section (1), for the words,
brackets, letter and figures “sub-clause (b) of clause (9) of section 2”, the words,
brackets, letters and figures “clause (ba) of sub-section (1) of section 2C” shall be
substituted.
43. In section 49 of the principal Act, in sub-section (1),—
(i) for the words and figures “business of life insurance or any other class
or sub-class of insurance business to which section 13 applies”, the words
“insurance business” shall be substituted;
(ii) for the words “the fund of such other class”, the words “the fund of
the other class” shall be substituted;
(iii) for the words and figures “abstract referred to in section 15”, the
words and figures “report referred to in section 15” shall be substituted.
44. In section 51 of the principal Act, for the words “not exceeding one rupee”,
the words “of one rupee per page, subject to a maximum fee of two hundred and
fifty rupees” shall be substituted.
45. In section 52A of the principal Act,—
(i) for the marginal heading, the following marginal heading shall be
substituted, namely:––
“When Board of Directors and the like, superseded and
Administrator for management of insurance business may be
appointed.”;
39 of 2002.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
17
(ii) for sub-section (1), the following sub-section shall be substituted,
namely:—
“(1) If at any time the Authority has reason to believe that an
insurer carrying on insurance business is acting in a manner likely to be
prejudicial to the interest of its policyholders, it may, for reasons to be
recorded in writing and after giving the insurer an opportunity of being
heard, by order in writing, supersede the Board of Directors or such
other management or governing or executive committee of such
insurer, and appoint an Administrator to manage the affairs of the
insurer, under the direction and control of the Authority for such
period not exceeding one year.
(1A) The Authority may, for reasons to be recorded in writing,
extend the period referred to in sub-section (1) from time to time.”.
46. In section 55 of the principal Act, in sub-section (3), for the word and
figures “section 643”, the word and figures “section 468” shall be substituted.
47. In section 61A of the principal Act, after sub-section (6), the following
sub-section shall be inserted, namely:––
“(7) Where the appeal filed before the National Company Law Appellate
Tribunal under sub-section (1) is not disposed of within the said period of six
months, the Appellate Tribunal shall record its reasons in writing therefor.”.
48. In section 64 of the principal Act, for the words “on or before the last day
of January in every calendar year”, the words “within such time as may be
determined by the Authority” shall be substituted.
49. In section 64F of the principal Act,—
(i) in sub-section (1),—
(a) in clause (a), for the word “four”, the word “seven” shall be
substituted;
(b) in clause (b), for the words “an eminent person”, the words
“two eminent persons” shall be substituted;
(c) after clause (c), the following clause shall be inserted,
namely:—
“(ca) two persons nominated by the Central Government;”;
(ii) in sub-section (2),—
(a) in clause (a), for the word “four”, the word “seven” shall be
substituted;
(b) for clauses (b) and (c), the following clauses shall be
substituted, namely:––
“(b) two eminent persons not connected with insurance
business as may be nominated by the Authority;
(c) three representatives from among insurance agents,
insurance intermediaries and policyholders as may be nominated
by the Authority;
(d) one representative each from self-help groups and
insurance co-operative societies as may be nominated by the
Authority; and
(e) two persons nominated by the Central Government:”.
Amendment of
section 55.
Amendment of
section 61A.
Amendment of
section 64.
Amendment of
section 64F.
18
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
18
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Amendment of
section 64G.
Amendment of
section 64H.
Amendment of
section 64K.
Amendment of
section 64L.
Amendment of
section 64M.
Amendment of
section 64R.
Omission of
section 64ULA.
Amendment of
section 64VB.
Amendment of
section 101A.
Substitution of
new section for
section 102.
Penalty for
default in
complying with,
or act in
contravention of,
this Act or
Insurance
Regulatory and
Development
Authority Act,
1999.
50. In section 64G of the principal Act, in sub-section (1), for the word
“Chairman”, the word “Chairperson” shall be substituted.
51. In section 64H of the principal Act, in sub-section (2), for the words
“General Council”, the words “General Insurance Council” shall be substituted.
52. In section 64K of the principal Act,––
(i) in sub-section (1), the words, brackets and figure “the proviso to
sub-section (2) of” shall be omitted;
(ii) in sub-section (4), the words, brackets and figures “sub-sections (1)
and (2) of” shall be omitted; and the words, brackets and figures “or, as the
case may be, of sub-section (2) of section 16” shall be omitted.
53. In section 64L of the principal Act,—
(i) in sub-section (1),—
(a) in clause (a), after the words “general insurance business”, the
words “, health insurance business and re-insurance business” shall be
inserted;
(b) in clause (c), after the words “general insurance policies”, the
words “, health insurance policies and re-insurance policies” shall be
inserted;
(ii) for sub-section (2), the following sub-section shall be substituted,
namely:—
“(2) For the purpose of enabling it to effectively discharge its
functions, the Executive Committee of the General Insurance Council
may collect such fees as may be laid down in the bye-laws made by the
General Insurance Council from the insurers carrying on general
insurance business or health insurance business or re-insurance
business.”.
54. In section 64M of the principal Act, in sub-section (1), the words, brackets
and figure “the proviso to sub-section (1) of” shall be omitted.
55. In section 64R of the principal Act, in sub-section (1), in clause (b), for the
words “any prescribed fee”, the words “fee, as laid down in the bye-laws made by
the Life Insurance Council and General Insurance Council” shall be substituted.
56. Section 64ULA of the principal Act shall be omitted.
57. In section 64VB of the principal Act, in sub-section (2), in the
Explanation,––
(i) after the word “post”, the words “or by any online mode” shall be
inserted;
(ii) after the word “posted”, the words “or the money is received in
insurer’s bank account” shall be inserted.
58. In section 101A of the principal Act, in sub-section (1), after the words
“Indian re-insurers”, the words “a minimum of” shall be inserted.
59. For section 102 of the principal Act, the following section shall be
substituted, namely:—
“102. If any insurer or insurance intermediary, who is required under
this Act or the Insurance Regulatory and Development Authority Act, 1999,
or rules or regulations made thereunder fails to,—
(a) furnish any document, statement, account, return or report to
the Authority; or
(b) comply with the directions of the Authority; or
(c) maintain solvency margin; or
41 of 1999.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
19
41 of 1999.
41 of 1999.
(d) comply with the directions on the insurance treaties,
he or it shall be liable to a penalty which shall be up to one lakh rupees for
each day during which such failure continues subject to a maximum of ten
crore rupees.
60. In section 104 of the principal Act,—
(i) in the marginal heading, the figures and letters “, 27A, 27B, 27D”
shall be omitted;
(ii) the words, figures and letters “, section 27A, section 27B,
section 27D” shall be omitted.
61. After section 105B of the principal Act, the following section shall be
inserted, namely:—
“105BA. (1) If any person who acts as an insurance intermediary
without being registered under section 42D to act as such, he shall be liable
to penalty which shall not be less than one lakh rupees, but may extend to ten
lakh rupees and any person who appoints as an insurance intermediary or any
person not registered to act as such or transacts any insurance business in
India through any such person, shall be liable to penalty which shall not be
less than ten lakh rupees, but may extend to one crore rupees.
(2) Where the person contravening the provisions of sub-section (1) is a
company or firm, then, without prejudice to any other proceedings which may
be taken against the company or firm, every director, manager, secretary or
other officer of the company and every partner of the firm, who is knowingly
a party to such contravention shall be liable to penalty which shall not be
less than one lakh rupees, but may extend to ten lakh rupees.”.
62. In section 105C of the principal Act, in sub-section (1), for the words,
brackets, figures and letters “sub-sections (8) and (9) of section 42D, section 52F
and section 105B”, the words, figures and letters “section 52F, section 105B and
section 105BA” shall be substituted.
63. After section 105D of the principal Act, the following section shall be
inserted, namely:—
“105E. (1) While determining the penalty to be imposed under the
provisions of this Act or the Insurance Regulatory and Development Authority
Act, 1999 or rules or regulations made thereunder, the Authority shall have
regard to the following factors, namely:—
(a) the nature, gravity and duration of the default;
(b) the repetitive nature of the default;
(c) the disproportionate gain or unfair advantage, wherever
quantifiable, made as a result of the default;
(d) the loss caused to the policyholders as a result of the default;
(e) the action taken by the person to mitigate the effects and
consequences of the default, and the timeliness and effectiveness of such
action;
(f) the number of policyholders impacted by such default;
(g) whether the penalty to be imposed is proportionate, having
regard to the need to secure observance of and deter breach of the
provisions of this Act, the Insurance Regulatory and Development
Authority Act, 1999 and rules and regulations thereunder; and
Amendment of
section 104.
Insertion of new
section 105BA.
Penalty for
contravention of
section 42D.
Amendment of
section 105C.
Insertion of new
section 105E.
Factors to be
taken into
account before
imposing
penalty.
20
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
20
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Amendment of
section 106.
Amendment of
section 110B.
Substitution of
new section for
section 110F.
Provisions
applicable to
State
Governments,
and the like.
Amendment of
section 114.
Amendment of
section 114A.
(h) such other factors as may be deemed appropriate by the
Authority:
Provided that before imposing any penalty, the person shall be given an
opportunity of being heard.
(2) A brief of such penal action shall be disclosed in the form of press
release on the website of the Authority within a period of thirty days.
(3) The manner and procedure for imposing penalties may be such as
specified by the regulations.”.
64. In section 106 of the principal Act,—
(a) in sub-section (11), for the word and figures “section 237”, the word
and figures “section 213” shall be substituted;
(b) sub-section (12) shall be omitted.
65. In section 110B of the principal Act, the words, brackets and figures
“under sub-section (1) of section 42” shall be omitted.
66. For section 110F of the principal Act, the following section shall be
substituted, namely:—
“110F. Notwithstanding any exemption granted under section 118, the
provisions of sections 3, 3A, 33, 34, clause (a) of section 34E, 34F, 40C, 44A,
64UM, 64V, 64VA, 64VB, 64VC, 101A, 101C and 110D, shall also apply, so
far as may be, to and in relation to the general insurance business carried on
by a State Government or a Government company as defined in clause (45) of
section 2 of the Companies Act, 2013.”.
67. In section 114 of the principal Act,––
(i) in sub-section (2),––
(a) for clause (aaa), the following clause shall be substituted,
namely:––
“(aaa) the conditions and manner of foreign investment
under section 3AA;”;
(b) clauses (d), (h), (i), (j) and (l) shall be omitted;
(ii) sub-section (4) shall be omitted.
68. In section 114A of the principal Act,––
(a) for sub-section (1), the following sub-section shall be substituted,
namely:––
“(1) The Authority may, by notification, make regulations
consistent with the provisions of this Act and the rules made thereunder,
to carry out the purposes of this Act and while making the regulations
shall ensure transparency by––
(a) publishing draft regulations along with such other details
on its website for inviting public comments for a specified period
prior to issuing such regulations;
(b) publishing a general statement of its response to the
public comments not later than the date of notification of the
regulations; and
(c) periodically reviewing such regulations:
18 of 2013.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
21
Provided that if the Authority is of the opinion that certain
regulations are required to be made or existing regulations are to be
amended urgently in the public interest or the subject matter of the
regulation relates solely to the internal functioning of the Authority, it
may dispense with the condition of publishing draft regulations and
record the reasons for doing so:
Provided further that if the Authority considers to approve the
regulations in a form substantially different from the proposed
regulations other than changes made in consideration of comments
received by it, it shall repeat the process mentioned in this sub-section.”;
(b) in sub-section (2),––
(i) in clause (f), after the words “revenue account”, the words “and
other financial statements” shall be inserted;
(ii) after clause (f), the following clause shall be inserted,
namely:—
“(fa) the eligibility criteria and other conditions for
an Actuary under section 12A;”;
(iii) for clause (g), the following clause shall be substituted,
namely:—
“(g) the purpose for which and the manner in which the
report of the Actuary to be submitted, and the form and manner in
which the statement shall be appended, under section 13;”;
(iv) after clause (gb), the following clause shall be inserted,
namely:––
“(gc) the form, manner and period for submission of returns
to the Authority under section 15;”;
(v) for clause (i), the following clause shall be substituted,
namely:—
“(i) the investment of assets by an insurer in a time, manner,
limitations, conditions and restrictions under section 27;”;
(vi) for clause (ja), the following clause shall be substituted,
namely:––
“(ja) the form in which balance-sheets in respect of the
insurance business of each of the insurers concerned and the
manner in which actuarial reports and abstracts in respect of the
insurance business are to be prepared under clauses (b) and (c) of
sub-section (3) of section 35, and the manner, procedure and other
conditions for a scheme of arrangement or amalgamation or
transfer of business under sub-section (4) of section 35;”;
(vii) for clause (q), the following clauses shall be substituted,
namely:—
“(q) the form, manner of making application for registration,
the documents to be accompanied and the fee payable under
sub-section (3) of section 42D;
22
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
22
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Insertion of new
sections 114B
and 114C.
Subsidiary
instructions.
Consultative
Committee.
(qa) any other default subject to which the registration may
be suspended or cancelled under clause (viii) of sub-section (6) of
section 42D;”;
(viii) for clause (r), the following clause shall be substituted,
namely:—
“(r) the annual fee in relation to registration under
sub-section (4A) of section 42D and the procedure for suspension
or cancellation of registration under the said sub-section;”;
(ix) for clause (v), the following clause shall be substituted,
namely:––
“(v) the fee for issuance of duplicate certificate of
registration under sub-section (8) of section 42D;”;
(x) after clause (vb), the following clause shall be inserted,
“(vba) the period, extent and conditions under which certain
insurers may be exempted by the Authority under sub-section (3)
of section 48B;”;
(xi) after clause (zba), the following clause shall be inserted,
namely:—
“(zbb) the fee for inspection of the documents filed by an
insurer with the Authority and obtaining a copy of said document
or part thereof under section 119;”;
(xii) after clause (zc), the following clauses shall be inserted,
namely:––
“(zca) the manner and conditions of making subsidiary
instructions under section 114B;
(zcb) the manner of the constitution of Consultative
Committees under section 114C;”.
69. After section 114A, the following sections shall be inserted, namely:––
“114B. (1) The Chairperson or one or more whole-time Members of the
Authority or both may issue subsidiary instructions in such manner and
subject to such conditions as may be specified by the regulations for
the following purposes, namely:––
(a) clarifying the ambiguity of any regulation, if any; and
(b) laying down any procedural requirement ancillary to any
regulation:
Provided that before making such instructions, the concerned
Consultative Committee constituted under section 114C shall be consulted:
Provided further that where subsidiary instructions are required to be
made urgently, it may do so, without consulting the Consultative Committee
after recording the reasons thereof.
(2) Any contravention of the subsidiary instructions shall amount to
contravention of the regulation it relates to.
114C. The Authority shall constitute Consultative Committees in such
manner as may be specified by regulations, to advise it on––
(a) matters relating to the making of subsidiary instructions under
section 114B; and
namely:––
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
23
18 of 2013.
11 of 1922.
43 of 1961.
(b) any other issue as may be determined by it:
Provided that the advice of the Consultative Committee shall not be
binding on the Authority.”.
70. Section 115 of the principal Act shall be omitted.
71. For section 116 of the principal Act, the following section shall be
substituted, namely:—
“116. (1) The Central Government may, by order published in the
Official Gazette and for the reasons to be recorded in writing, exempt any
insurer constituted, incorporated or domiciled in any country outside India
from any of the provisions of this Act which may be specified in the order
either absolutely or subject to such conditions or modifications as may be
provided in such order.
(2) The order published under sub-section (1) shall be laid, as soon as
after it is made, before each House of Parliament.”.
72. In section 116A of the principal Act, in the proviso, the words, brackets
and figure “sub-section (1) of”, the words, figures and letters “or section 28A or
section 28B” and the words, brackets and figure “sub-section (2) of” shall be
omitted.
73. For section 117 of the principal Act, the following section shall be
substituted, namely:—
“117. Save as otherwise provided, nothing in this Act shall affect the
liability of an insurer being a company to comply with the provisions of the
Companies Act, 2013.”.
74. In section 118 of the principal Act,—
(i) in clause (c), for the word and figures “section 617”, the words,
brackets and figures “clause (45) of section 2” shall be substituted;
(ii) in clause (d),—
(a) in sub-clause (i), for the words, brackets, letters and figures
“clause (a) of section 58N of the Indian Income Tax Act, 1922”, the
words, brackets and figures “sub-section (6) of section (2) of the
Income-tax Act, 1961” shall be substituted;
(b) in sub-clause (ii), for the words “dependents; or”, the word
“dependent;” shall be substituted;
(c) sub-clause (iii) shall be omitted.
75. For section 119 of the principal Act, the following section shall be
substituted, namely:—
“119. Any person may, on payment of such fees as may be specified by
the regulations,—
(i) inspect the documents filed by an insurer with the Authority
under sub-section (2) of section 3; and
(ii) obtain a copy of any such document or part thereof.”.
76. Section 120 of the principal Act shall be omitted.
Omission of
section 115.
Substitution of
new section for
section 116.
Power to exempt
from certain
requirements.
Amendment of
section 116A.
Substitution of
new section for
section 117.
Saving.
Amendment of
section 118.
Substitution of
new section for
section 119.
Inspection and
supply of copies
of documents
related to
registration.
Omission of
section 120.
24
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
24
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
24
Amendment of
section 2.
Amendment of
section 6A.
Amendment of
section 18.
Amendment of
section 22.
Amendment of
section 24.
Amendment of
section 28.
Amendment of
section 30A.
Amendment of
section 43.
Amendment of
section 44.
Amendment of
section 48.
CHAPTER III
AMENDMENTS TO THE LIFE INSURANCE CORPORATION ACT, 1956
77. In section 2 of the Life Insurance Corporation Act, 1956 (hereafter in this
Chapter referred to as the Insurance Corporation Act),––
(i) in clause (3), sub-clause (iii) shall be omitted;
(ii) in clause (6), the words and figures “and a provident society as
defined in section 65 of the Insurance Act” shall be omitted.
78. In section 6A of the Insurance Corporation Act, in sub-section (2), for the
words and figures “Companies Act, 1956”, the words and figures “Companies
Act, 2013” shall be substituted.
79. In section 18 of the Insurance Corporation Act, for sub-section (2), the
following sub-section shall be substituted, namely:––
“(2) The Corporation shall establish zonal offices at Mumbai, Kolkata,
Delhi, Kanpur and Chennai, and may establish such other zonal offices as it
thinks fit.”.
80. In section 22 of the Insurance Corporation Act, in sub-section (3), the
words “in the prescribed manner” shall be omitted.
81. In section 24 of the Insurance Corporation Act, after sub-section (2), the
following sub-section shall be inserted, namely:––
“(3) Where a branch or office of the Corporation is situated in a country
outside India, the funds of such branch or office shall be maintained in
accordance with the laws of that country.”.
82. In section 28 of the Insurance Corporation Act, after sub-section (3), the
following sub-section shall be inserted, namely:––
“(4) Where a branch or office of the Corporation is situated in a country
outside India, the surplus in such branch or office shall be utilised in
accordance with the laws of such country.”.
83. In section 30A of the Insurance Corporation Act, after the words and
figures “Insurance Act, 1938”, the words and figures “, as applicable to the
Corporation by virtue of section 43 of the Life Insurance Corporation Act, 1956”
shall be inserted.
84. In section 43 of the Insurance Corporation Act,—
(a) in sub-section (1), the figures and letter “47A” shall be omitted and
for the figures, letter and word “110C, 119, 121, 122 and 123”, the figures,
letter and word “110C and 119” shall be substituted;
(b) in sub-section (2),––
(i) the figures and letters “28A”, “40A” and “44” shall be omitted;
(ii) after the figures and letter “40B”, the figures “42” shall be
inserted; and
(iii) for the figures and word “107 to”, the figures and word
“108 to” shall be substituted;
(c) sub-section (2A) shall be omitted;
(d) in sub-section (3), after the words “the Insurance Act”, the words
“and the rules and regulations made thereunder” shall be inserted.
85. In section 44 of the Insurance Corporation Act, clause (b) shall be omitted.
86. In section 48 of the Insurance Corporation Act, in sub-section (2),
clause (h) shall be omitted.
31 of 1956.
1 of 1956.
18 of 2013.
31 of 1956.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
25
41 of 1999.
4 of 1938.
4 of 1938.
4 of 1938.
4 of 1938.
CHAPTER IV
AMENDMENTS TO THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
ACT, 1999
87. In section 2 of the Insurance Regulatory and Development Authority
Act, 1999 (hereafter in this Chapter referred to as the Insurance Authority Act), in
sub-section (1), for clause (f), the following clause shall be substituted, namely:—
‘(f) “insurance intermediary” shall have the same meaning as assigned
to it in clause (10B) of section 2 of the Insurance Act, 1938;’.
88. In section 4 of the Insurance Authority Act, in the long line, after the words
“accountancy, administration”, the words “, information technology” shall be
inserted.
89. In section 5 of the Insurance Authority Act, for sub-section (1), the
following sub-section shall be substituted, namely:––
“(1) The term of office of the Chairperson and other whole-time
members shall be five years from the date on which they enter upon their office
or till they attain the age of sixty-five years, whichever is earlier, and shall be
eligible for reappointment.”.
90. In section 14 of the Insurance Authority Act, in sub-section (2),––
(i) in clause (i), the words, figures and letter “not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the
Insurance Act, 1938” shall be omitted;
(ii) for clause (n), the following clause shall be substituted, namely:––
“(n) imposing such penalty as specified in section 102 of the
Insurance Act, 1938 and for any violation of the provisions of this Act
or rules or regulations made thereunder;”.
91. After section 14 of the Insurance Authority Act, the following sections
shall be inserted, namely:––
“14A. The Authority may, for the purpose of efficient discharge of its
functions and to regulate and develop the insurance business—
(a) collect in such manner as it may think fit, information relating
to policies and claims from any insurer or other regulated entities; and
(b) furnish such information to any insurer or other regulated
entities in accordance with the provisions of section 14C.
14B. (1) For the purpose of enabling the Authority to discharge its
functions under this Act and the Insurance Act, 1938, it may at any time direct
any insurer or other regulated entities to submit statements relating to policies
and policyholder related information in such form and within such time as may
be specified by the regulations.
(2) Notwithstanding anything to the contrary contained in any law for
the time being in force or in any instrument regulating the constitution thereof
or in any agreement executed by it, relating to the secrecy of its dealings with
its constituents, an insurer or other regulated entities shall comply with any
direction issued under sub-section (1).
14C. (1) The insurer may, in connection with any insurance policy issued
or proposed to be issued by it, to any person, make an application to the
Authority in such form as the Authority may specify by the regulations.
Amendment of
section 2.
Amendment of
section 4.
Amendment of
section 5.
Amendment of
section 14.
Insertion of new
sections 14A
to 14E.
Power of
Authority to
collect policy
information.
Power to call for
returns
containing
policy
information.
Procedure for
furnishing
policyholder and
policy related
information to
insurer or other
regulated
entities.
26
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
26
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II—
Disclosure of
information
prohibited.
Power to
authorise.
Amendment of
section 16.
(2)
The
Authority
shall
process
the
application
made
under
sub-section (1) within such period as may be specified by the regulations only
after the insurer confirms to the Authority that the person has consented to
provide access of his policy related information in accordance with the
existing law and regulations framed in this regard including the preservation
of evidence of such consent.
(3) On receipt of an application under sub-section (1), the Authority
shall, as soon as may be, furnish the applicant with such policy related
information as specified in the application, as may be in its possession:
Provided that the information so furnished shall not disclose the names
of the insurer or other regulated entities that has submitted such information
to the Authority.
(4) The Authority may in respect of each application levy such fees, as
it may deem fit for furnishing such information.
14D. (1) Any information contained in any statement submitted by an
insurer or other regulated entities under section 14B or furnished by the
Authority to any insurer or other regulated entities under section 14C, shall be
treated as confidential and shall not, except for the specified intended
purposes, be published or otherwise disclosed.
(2) Nothing in this section shall apply to––
(a) the disclosure by any insurer or other regulated entities, with
the previous permission of the Authority, of any information furnished
to the Authority under section 14B or 14C;
(b) the publication by the Authority, if it considers necessary in the
public interest so to do, of any information collected by it under
section 14B or 14C, in such consolidated form as it may think fit without
disclosing the name of any insurer or other regulated entities or the
policyholder;
(c) the disclosure or publication by the Authority or the insurer or
other regulated entities of any policy related information to any other
insurance company, intermediary or regulated entity as permitted by the
Authority under the regulations to be issued from time to time.
(3) Notwithstanding anything contained in any law for the time being in
force, no court, tribunal or other authority shall compel the Authority or any
insurer or other regulated entities to produce or to give inspection of any
statement submitted by that insurer or other regulated entities under
section 14B or 14C or to disclose any policy related information furnished by
the Authority to that insurer or other regulated entities under section 14C.
14E. The Authority may, for the efficient discharge of its functions under
sections 14A to 14D, by a general or special order in writing, authorise any
entity regulated by it or any other statutory body having similar objectives to
perform such functions as specified in the said order.”.
92. In section 16 of the Insurance Authority Act,—
(a) in sub-section (2),––
(i) in clause (b), after the words “for the purposes of this Act”, the
words and figures “and the Insurance Act, 1938” shall be inserted;
(ii) after clause (b), the following clause shall be inserted,
namely:––
“(c) the capital expenditure, as per annual capital expenditure
plan approved by the Authority.”;
4 of 1938.
Sec. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
27
4 of 1938.
(b) after sub-section (2), the following sub-sections shall be inserted,
namely:––
‘(3) The Authority shall constitute a Reserve Fund and twenty-five
per cent. of the annual surplus of the Fund in any year shall be credited
to such Reserve Fund and such fund shall not exceed the total of annual
expenditure of preceding three financial years.
(4) After incurring all the expenses referred to in sub-section (2)
and transfer to Reserve Fund as specified in sub-section (3), the surplus
of the Fund shall be transferred to the Consolidated Fund of India.
Explanation.––For the purposes of this section, the expression
“Reserve Fund” means a fund to hold the surplus of the Fund, in the
form and manner specified in sub-section (3) of section 16.’.
93. After section 16 of the Insurance Authority Act, the following section shall
be inserted, namely:––
“16A. (1) The Authority shall constitute a fund to be called
the Policyholders’ Education and Protection Fund.
(2) There shall be credited to the Policyholders’ Education and
Protection Fund the following amounts, namely:—
(a) any grants and donations given to the Policyholders’ Education
and Protection Fund by the Central Government, State Governments, the
Authority, companies or any other institutions for the purposes of the
Policyholders’ Education and Protection Fund;
(b) the sums realised by way of penalties by the Authority under
this Act or the Insurance Act, 1938 or rules and regulations thereunder;
and
(c) such other sums as may be specified by the regulations.
(3) The Policyholders’ Education and Protection Fund shall be
administered and utilised by the Authority for education of policyholders and
protection of the interests of policyholders in the manner and for such
other purposes as may be specified by the regulations.”.
94. In section 23 of the Insurance Authority Act, for sub-section (1), the
following sub-section shall be substituted, namely:—
“(1) The Authority may, for the efficient discharge of its functions under
this Act, by a general or special order in writing by notification, delegate to
the Chairperson or any other member or any officer of the Authority, subject
to such conditions or restrictions, if any, as may be specified in the order, such
of its powers and functions under this Act, except the power to make
regulations and the power to register an insurer, as it may deem necessary or
expedient.”.
95. In section 26 of the Insurance Authority Act, for sub-section (1), the
following sub-section shall be substituted, namely:—
“(1) The Authority may, in consultation with the Insurance Advisory
Committee, by notification make regulations consistent with the provisions of
this Act and the rules made thereunder, to carry out the purposes of this Act
and while making the regulations shall ensure transparency by––
(a) publishing draft regulations along with such other details as
may be specified on its website and inviting public comments for a
specified period prior to issuing such regulations;
Insertion of new
section 16A.
Constitution of
Policyholders’
Education and
Protection Fund.
Amendment of
section 23.
Amendment of
section 26.
(b) publishing a general statement of its response to the public
comments, not later than the date of notification of the regulations; and
(c) periodically reviewing such regulations:
Provided that if the Authority is of the opinion that certain regulations
are required to be made or existing regulations to be amended urgently in the
public interest or the subject matter of the regulation relates solely to the
internal functioning of the Authority, it may dispense with the condition
of publishing draft regulations and record the reason for doing so:
Provided further that if the Authority decides to approve regulations in
a form substantially different from the proposed regulations other than
changes made in consideration of comments received by it, it shall repeat the
process mentioned in this sub-section.”.
————
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—412GI(S4)—21-12-2025.
DR. RAJIV MANI,
Secretary to the Govt. of India.
28
THE GAZETTE OF INDIA EXTRAORDINARY
[Part II— Sec. 1]
KSHITIZ
MOHAN
Digitally signed
by KSHITIZ
MOHAN
Date: 2025.12.21
22:07:31 +05'30'