IRDAI Regulations, 2024

The IRDAI Regulations, 2024, established by the Insurance Regulatory and Development Authority of India, aim to enhance the insurance sector's transparency and fairness. These regulations are enacted under the Insurance Act, 1938, and the Insurance Regulatory and Development Authority Act, 1999, with input from the Insurance Advisory Committee. The primary focus is on safeguarding policyholder interests and regulating insurer operations, ensuring a balanced and equitable insurance market.

Scope and Applicability (Sections 1–5)

The regulations apply to all insurers and distribution channels, excluding those solely involved in reinsurance. They are effective from the date of publication in the Official Gazette or April 1, 2024, whichever is later. A review is mandated every three years. The initial sections also define key terms and outline the regulations' objectives, emphasizing fair treatment and policyholder protection.

Policyholder Protection (Sections 6–25)

This section is dedicated to protecting policyholder interests, covering the sale and issuance of insurance policies, premium payments, and grievance redressal mechanisms. It includes guidelines for transparent solicitation, informed decision-making, and the establishment of a board-approved policy for policyholder protection. The regulations also address the issuance of electronic policies, privacy, and confidentiality.

Insurer Operations and Compliance (Sections 26–58)

Part B focuses on the operational aspects of insurers, including advertising standards, business location management, and outsourcing activities. It provides detailed guidelines on advertising practices, business plan requirements, and the conditions for opening new business locations. The regulations also emphasize the importance of internal controls, confidentiality, and compliance with regulatory standards.

Overall, the IRDAI Regulations, 2024, are designed to foster a transparent and fair insurance environment in India, benefiting both policyholders and insurers by ensuring compliance with established standards and promoting best practices in the industry.