IRDAI Forms Panels to Tackle Insurance Violations and Enhance Oversight

The Insurance Regulatory and Development Authority of India (IRDAI) has established panels composed of whole-time members to address violations of regulatory norms by insurers and intermediaries. This decision, made during the 132nd meeting of the IRDAI, comes amidst concerns over issues such as data leakage and mis-selling of policies within the insurance sector.


These panels are part of the IRDAI's enforcement function and are tasked with deciding on observed violations of the Insurance Act and its regulations. In addition to scrutinizing regulatory breaches, the IRDAI has also formed a panel of whole-time members to review specific share transfer applications and other related matters, demonstrating a delegation of powers by the Authority.


In other key decisions from the meeting:

  • The initial application (R1 application) for Kiwi General Insurance was approved . Companies seeking registration as an Indian Insurance company must navigate three stages: R1, R2, and R3.

  • The 'Rural, Social Sector and Motor Third Party obligations' under IRDAI regulations for the 2025-26 and 2026-27 financial years received approval .

  • The release of the Technical Guidance Document for Second Quantitative Impact Study (QIS 2), aimed at implementing Risk Based Capital (Ind-RBC), was also approved.


These actions by IRDAI reflect a broader push for enhanced vigilance in the insurance sector. The finance ministry has previously urged the IRDAI to improve oversight on claim settlements and grievance redressal, particularly in light of rising health insurance premiums and corporate governance concerns. There have been reports of health insurance premiums increasing by almost 15% in some cases this year, leading to policyholders opting out. The government has expressed its desire for these issues to be addressed urgently, potentially through new protocols before the Insurance Amendment Bill is passed.