IRDAI Notifies Policyholders Education and Protection Fund Regulations

India's insurance regulator has notified the Policyholders' Education and Protection Fund Regulations, 2026, formalizing the legal framework for a fund dedicated to protecting and educating insurance consumers. The move follows a public consultation earlier in the year and completes a process that began with an exposure draft and a review of industry and public feedback. The fund is designed to finance activities spanning policyholder education and awareness, support for grievance redressal, infrastructure to recover and reunite unclaimed amounts with rightful owners, and technology-based services that improve the customer experience. The regulations arrive alongside a broader tightening of the insurance rulebook, including a revised framework on the manner and procedure for imposing penalties, with collected penalties expected to feed into the fund. By putting the fund on a clear statutory footing, the regulator aims to strengthen consumer trust and ensure a stable, dedicated source of financing for protection initiatives rather than relying on one-off transfers. The notification is part of the authority's wider push to widen insurance access and improve conduct standards across the sector as it pursues its long-term goal of expanding coverage to all Indians.