The Insurance Regulatory and Development Authority of India has issued a consultation paper on a proposed regulatory framework for the Policyholders’ Education and Protection Fund, setting out how the INR 800 crore fund would be governed and used for policyholder-focused initiatives. The proposal centers on a formal structure for insurance awareness, policyholder protection, grievance support and technology-enabled services. The fund was constituted in March 2026 under Section 16A of the Insurance Regulatory and Development Authority Act, 1999, as inserted by the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. Under the Act, the fund is to comprise grants and donations from central and state governments, the regulator and other sources, penalty amounts realized under insurance laws, and other sums specified through regulations. The consultation proposes using investment income from the corpus for nationwide insurance literacy and awareness programs, stronger grievance redressal mechanisms, technology-based services for policyholders including proactive alerts during natural calamities and other emergencies, and systems to help trace and recover unclaimed insurance amounts. It also proposes a Fund Management Committee to oversee governance, administration, utilization and performance monitoring. Comments on the consultation paper are invited until July 13, 2026.

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