# India insurance regulatory and grievance reforms

> Live situation record from CLSTR: https://clstr.news/situations/india-insurance-regulatory-and-grievance-reforms
> Updated: 2026-08-14T10:52:53.000Z. Sources: 3. Developments: 2.

The Indian Ministry of Finance and the Insurance Regulatory and Development Authority of India (IRDAI) have moved to strengthen regulatory frameworks and grievance redressal mechanisms for the insurance sector.

Initial developments included the issuance of draft rules to establish formal procedures for inquiries, adjudication, and appeals under the General Insurance Business (Nationalisation) Act, 1972. These draft rules proposed granting adjudicating officers powers similar to civil courts and established a 14-day notice period for formal inquiries. Concurrently, the IRDAI addressed stakeholder feedback regarding the Policyholders Education and Protection Fund (PEPF) Regulations, 2026, clarifying the management of investment income and the use of technology infrastructure.

Following these regulatory drafts, the Finance Ministry issued an advisory detailing the escalation process for policyholders. This advisory mandates that insurers utilize a Complaints Management System integrated with the IRDAI’s Bima Bharosa Portal. It outlines a time-bound resolution process where insurers must acknowledge complaints immediately and aim for resolution within 14 days, providing a pathway for customers to escalate unresolved issues through the national portal.

## Timeline

### 2026-08-14: India Finance Ministry issues advisory on insurance grievance redressal

India's Finance Ministry issued an advisory detailing how policyholders can resolve insurance grievances through insurers and the IRDAI's Bima Bharosa Portal.

3 sources. https://clstr.news/cluster/india-finance-ministry-issues-advisory-on-insurance-grievance-redressal

### 2026-07-31: India Issues Draft Insurance Inquiry Rules, Policyholder Fund Regulations

India's Finance Ministry and IRDAI released draft rules on insurance company inquiries, adjudication and a policyholder education fund, opening them for public comment.

2 sources. https://clstr.news/cluster/india-issues-draft-insurance-inquiry-rules-policyholder-fund-regulations

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Cite as: India insurance regulatory and grievance reforms. CLSTR, https://clstr.news/situations/india-insurance-regulatory-and-grievance-reforms