The Ministry of Finance (Department of Financial Services), on July 23, 2026, issued the Draft Insurance Rules, 2026 to supersede the Insurance Rules, 1939 under the Insurance Act, 1938. The draft rules have been released for public consultation, with stakeholders invited to submit objections or suggestions within 30 days from the date the draft rules are made available to the public.
The draft rules prescribe provisions relating to prospectuses, proposal forms, insurance councils, bona fide insurance agents, share ownership declarations, regulatory action against financially distressed insurers, insurance business operations, and payment procedures where the nominee is a minor. They also set out compliance requirements for insurers, including disclosure obligations and governance of Life and General Insurance Councils.
The proposed rules aim to modernise the regulatory framework governing insurance business by replacing the 1939 Rules, strengthening regulatory oversight, improving transparency, and aligning procedural requirements with the provisions of the Insurance Act, 1938.
[G.S.R. 652(E)]
