The Insurance Regulatory and Development Authority of India (IRDAI) issued a Consultation Paper on the proposed regulatory framework for the Policyholders' Education and Protection Fund (PEPF) and invited comments and suggestions from stakeholders and the public.
The PEPF, with a corpus of Rs 800 crore, was constituted by IRDAI in March 2026 pursuant to the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025. The fund is mandated to promote policyholder education, safeguard policyholder interests, and support policyholder-centric initiatives.
Key Proposals: The investment income generated from the Fund corpus will be utilised for nationwide insurance literacy programmes, strengthening grievance redressal mechanisms, developing technology-enabled services including proactive alerts during natural calamities, and creating systems to trace and recover unclaimed insurance amounts. A Fund Management Committee will oversee governance and performance monitoring.
Sources: IRDAI Consultation Paper (July 2026), BimaBazaar Insurance Times