The Insurance Regulatory and Development Authority of India (IRDAI), on June 15, 2026, amended its earlier notification on Obligatory Cession for the Financial Year 2026–27 issued under Section 101A of the Insurance Act, 1938. The amendment was made after consultation with the Advisory Committee constituted under Section 101B and with the prior approval of the Central Government.
The revised notification provides that the percentage of obligatory cession of the sum insured on each General Insurance Policy shall be 4% for insurance business attaching during the period April 1, 2026, to March 31, 2027. This replaces the corresponding provision contained in the notification dated April 9, 2026.
The notification further clarifies that the obligatory cession requirement shall be nil for premiums ceded to the Terrorism Pool, Nuclear Pool, and Bharat Maritime Insurance Pool. Additionally, the entire obligatory cession is required to be placed exclusively with the General Insurance Corporation of India (GIC Re).
[Notification No. IRDAI/RI/5/219/2026]
