IRDAI seeks comments on subsidiary instructions, consultative committee norms
IRDAI latest consultation aims to gather industry views on subsidiary instructions and committee procedures as the regulator reviews its internal governance and regulatory processes.
IRDAI has invited stakeholder comments on proposed subsidiary instructions and norms governing its consultative committees, seeking feedback on the regulatory framework. AI Generated Image.
NEW DELHI – The Insurance Regulatory and Development Authority of India (IRDAI) has issued an exposure draft of the IRDAI (Subsidiary Instructions and Consultative Committees) Regulations, 2026, which would set out how the regulator issues subsidiary instructions and how the consultative committees that advise it are constituted. The draft is dated 3 November 2026, and stakeholders have until 23 November 2026 to submit comments.
The proposed regulations have been framed under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. Section 114B of the Insurance Act, 1938, inserted by that Act, provides for the manner and conditions in which subsidiary instructions may be issued after consulting consultative committees. Section 114C empowers the Authority to specify how those committees are constituted. The draft seeks to put both provisions into operation through a dedicated set of regulations.
IRDAI: A separate framework for a distinct regulatory instrument
The Act recognises subsidiary instructions as a regulatory instrument distinct from regulations. Under the draft, such instructions could be issued for two purposes: clarifying ambiguities in regulations, and addressing procedural matters ancillary to regulations. The draft spells out what “identification of ambiguity” and “procedural requirement”, the terms used in Section 114B, would cover in practice.
IRDAI had earlier issued an exposure draft on 17 June 2026 titled the IRDAI (Procedure for Making Regulations and Subsidiary Instructions) Regulations, 2026. That draft addressed the making of regulations as well as subsidiary instructions, and included provisions on consultation with the Insurance Advisory Committee, economic impact analysis and urgent regulations.
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The regulator now proposes that the framework governing subsidiary instructions be specified through a separate regulation. In the exposure draft’s executive summary, IRDAI says a separate framework would clearly delineate the scope and limits of the power under Section 114B.
According to the summary, the separate regulation would also allow the Authority to specify safeguards on several points: the procedure for clarifying ambiguity, the nature of permissible procedural requirements, consultation with the concerned consultative committee, the circumstances in which consultation may be dispensed with on grounds of urgency, and the publication, review and withdrawal of subsidiary instructions.
IRDAI: Consultative committees, review and urgent instructions
The draft provides for the constitution of consultative committees to advise on matters relating to subsidiary instructions and on other matters that IRDAI may refer to them. It lists the subject areas for which committees would be set up: policyholder protection, sectoral development, market conduct, financial stability and health of regulated entities, insurance and insurance-related services, insurance distribution and allied activities, and reinsurance, along with other matters the Authority considers necessary. The draft also covers the conduct of committee meetings, including quorum, and the terms of office of members.
On review, the proposed regulations allow subsidiary instructions to be reviewed on specified grounds and require them to be amended accordingly. The draft also recognises “urgent subsidiary instructions”, which could be issued where prior consultation with the relevant consultative committee is not practicable. IRDAI’s summary says the framework requires reasons to be recorded for any such action, so that responses to exigent situations are accompanied by accountability.
IRDAI: How to submit comments
IRDAI has invited comments from stakeholders on the exposure draft. The draft regulations are given in Annexure 1 of the consultation document, and comments must be submitted in the format specified in Annexure 2. The last date for submitting comments is 23 November 2026.
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 received Presidential assent on 20 December 2025. It amends the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the Insurance Regulatory and Development Authority Act, 1999, and also raised the permissible foreign investment in Indian insurers to 100 per cent. Since the Act’s passage, IRDAI has been issuing exposure drafts of regulations to implement its provisions, including on penalties, actuarial, finance and investment functions, intermediaries and surveyors.
