The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a comprehensive framework for transitioning existing third-party administrators to perpetual registration under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. According to the latest exposure draft, TPAs holding certificates of registration issued before the SBSR Act came into force may apply for continuation of registration and issuance of a new certificate within 90 days before their existing three-year registration expires. The framework establishes a ₹50,000 annual fee, plus applicable taxes, payable by January 31 each year for the ensuing financial year.
Under the proposed framework, TPAs missing the initial 90-day deadline may pay the fee by March 31 along with interest of 2 per cent on the annual fee. As reported in the exposure draft, failure to pay the fee and interest by March 31 would amount to a breach of registration conditions and attract regulatory action. The regulator has also proposed that all insurance regulations will be reviewed once every three years from the date of publication unless an earlier review, amendment or repeal is considered necessary.
Under the proposed framework, IRDAI will be required to publish draft regulations on its website along with a statement of particulars detailing the statutory provisions invoked, regulatory intent and, where applicable, relevant global best practices. The regulator has proposed a minimum 21-day period for public comments from insurers, intermediaries and other stakeholders. Additionally, IRDAI will be required to publish a general statement outlining its response to public comments by the date the regulations are notified.
The draft framework allows the regulator to bypass the consultation process or the consultative committee route in cases requiring urgent regulatory intervention in the public interest, provided the reasons for doing so are recorded in writing. The framework also enables IRDAI to assess the expected costs and benefits of proposed regulations on policyholders, industry participants and the broader economy before finalising them.
IRDAI has invited comments and suggestions from stakeholders on the draft framework until July 10, 2026. The draft regulations have been placed in the public domain for comments until this extended deadline. The move follows the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which seeks to modernise the regulatory architecture of the insurance sector and strengthen transparency in policymaking. If the final regulation differs substantially from the draft for reasons other than stakeholder feedback received during consultation, the regulator will have to undertake a fresh round of public consultation.
