Insurance Regulatory and Development Authority of India sets transitional annual fee arrangements as insurance intermediary registrations shift to continuous validity

The Insurance Regulatory and Development Authority of India has issued a circular setting out transitional arrangements for the issuance of certificates of registration and payment of annual fees by insurance intermediaries following the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 coming into force on 5 February 2026. The Act amends section 42D of the Insurance Act, 1938 so intermediary registrations remain valid on a continuous basis, subject to payment of an annual fee, until suspended or cancelled. With effect from 5 February 2026, the previous three-year validity period for certificates of registration and the associated renewal fee regime is discontinued and intermediaries will instead be required to meet an annual fee obligation to be specified through regulations. For intermediaries granted a fresh registration or a renewal between 5 February 2026 and 30 June 2026, an interim annual fee is payable at the time the certificate is issued, using the fee structure set out in the circular; where a renewal was granted on or after 5 February 2026 but the renewal fee had already been paid earlier, the amount collected will be adjusted against the interim annual fee and any excess refunded. The interim arrangement will remain in force until a comprehensive regulatory framework governing annual fee payments is notified.