The Insurance Regulatory and Development Authority of India (IRDAI) on June 23, 2026, issued Press Release on Consultation Paper - Exposure Draft on proposed IRDAI (Policyholders’ Education and Protection Fund) Regulations, 2026.
The Insurance Regulatory and Development Authority of India (IRDAI) has released a consultation paper proposing a regulatory framework for the Policyholders’ Education and Protection Fund (PEPF) and has invited feedback from stakeholders and the public. The Fund, with an initial corpus of ₹800 crore, was established in March 2026 following the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which introduced Section 16A in the IRDAI Act, 1999 to strengthen policyholder education and protection.
The PEPF will be funded through contributions such as government grants, donations, penalties collected under insurance laws, and other prescribed sources. It will be administered by IRDAI to support initiatives focused on policyholder awareness, protection, and overall welfare within the insurance ecosystem.
The proposed regulations aim to create a structured and sustainable framework to enhance insurance literacy, strengthen grievance redressal systems, and leverage technology for improved policyholder services. Key proposals include using investment income from the Fund for nationwide awareness campaigns, developing tech-enabled services such as proactive alerts during emergencies, and establishing systems to trace and recover unclaimed insurance amounts. A Fund Management Committee is also proposed to oversee governance, utilisation, and performance monitoring.
Overall, the PEPF is envisioned as a key institutional mechanism to empower policyholders, build consumer confidence, and promote a more inclusive and resilient insurance sector. Comments on the consultation paper can be submitted to IRDAI by July 13, 2026.
The consultation paper is available on the IRDAI website for public review and feedback. Link.
