The Insurance Regulatory and Development Authority of India (IRDAI) has constituted dedicated panels of Whole-Time Members to examine violations by insurers and intermediaries. This decision was made during the regulator’s 132nd authority meeting, held earlier this week, as per an official release on Tuesday.
These panels are empowered to investigate breaches of the Insurance Act and related regulations, particularly in cases involving potential mis-selling of insurance policies and data leakage — two areas that have drawn heightened scrutiny in recent months.
“As part of the enforcement function, to decide on the violations observed as regards the provisions of Insurance Act and Regulations issued thereunder, with respect to certain Insurers/Insurance Intermediaries, panels of Whole-Time Members were formed,” the regulator stated.
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Panels Will Also Review Share Transfers, Other Regulatory Approvals
Beyond enforcement, the newly constituted panels of Whole-Time Members have also been tasked with handling share transfer applications and other regulatory matters delegated by the Authority. This is part of IRDAI’s broader strategy to streamline oversight while ensuring quicker decisions in areas involving capital structure and operational compliance.
This delegation of authority is expected to improve governance efficiency and promote transparency within the sector. It also underlines IRDAI’s commitment to tightening the regulatory framework amidst concerns over unethical sales practices and data misuse.
Kiwi General Insurance Gets First Green Light; New QIS Guidance Released
In a parallel development, IRDAI approved the R1 application of Kiwi General Insurance, marking the first step toward obtaining a full license to operate as an Indian insurance company. The licensing process follows a three-stage path: R1 (initial application), R2 (detailed scrutiny), and R3 (final approval and registration).
Approval of Kiwi General’s R1 application indicates that the proposal has met preliminary criteria and can now advance to the next stage of regulatory scrutiny. The entry of new players like Kiwi General is expected to enhance competition and innovation within India’s general insurance space.
Additionally, IRDAI approved the Rural, Social Sector, and Motor Third Party Obligations for the financial years 2025–26 and 2026–27. These obligations are designed to ensure that insurers fulfill their responsibilities toward under-served segments and compulsory insurance mandates.
The meeting also marked the release of the Technical Guidance Document for the Second Quantitative Impact Study (QIS 2) — a crucial preparatory step in implementing India’s version of Risk-Based Capital norms (Ind-RBC). This risk-based framework aims to ensure that insurers maintain capital in proportion to their risk exposure, fostering long-term solvency and policyholder protection.