Press Release

Insurance Regulatory and Development Authority of India Press Release | 23 June, 2026 IRDAI Issues Consultation Paper on the proposed regulations pertaining to ₹800 Crore Policyholders’ Education and Protection Fund (PEPF) The Insurance Regulatory and Development Authority of India (IRDAI) issued a Consultation Paper on the proposed regulatory framework for the Policyholders’ Education and Protection Fund (PEPF) and invited comments and suggestions from stakeholders and members of the public.

The PEPF, with a corpus of ₹800 crore, was constituted by IRDAI in March 2026 pursuant to the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which introduced Section 16A in the IRDAI Act, 1999. The provision mandates the establishment of a dedicated Fund to promote policyholder education, safeguard policyholder interests, and support other policyholder-centric initiatives as may be prescribed.

As envisaged under the Act, the Fund shall comprise grants and donations from the Central and State Governments, IRDAI and other sources, amounts realised through penalties under insurance laws, and such other sums as may be specified through regulations. The Fund is to be administered and utilised by IRDAI for policyholder education, protection, and related purposes.

Against this backdrop, the proposed regulations seek to establish a structured and sustainable framework for enhancing insurance awareness, strengthening policyholder protection, improving grievance support systems, and leveraging technology to deliver better policyholder services. It is proposed that the investment income generated from the Fund corpus be utilised for nationwide insurance literacy and awareness programmes, strengthening grievance redressal mechanisms, developing technology-enabled services for policyholders, including proactive alerts during natural calamities and other emergencies, and creating systems to facilitate tracing and recovery of unclaimed insurance amounts. The consultation paper also proposes the constitution of a Fund Management Committee to oversee the governance, administration, utilisation, and performance monitoring of the Fund.

The PEPF is envisaged as a significant institutional mechanism for empowering policyholders, strengthening consumer confidence, and advancing the development of a more informed, inclusive, and resilient insurance ecosystem.

Comments and suggestions on the consultation paper may be submitted to IRDAI on or before July 13, 2026. The consultation paper is available on the IRDAI website for public review and feedback. Link.