Regulation, tax and market (2025–26)

It allows 100% foreign direct investment, lets IRDAI cap commissions and order the return of wrongful gains (disgorgement), and creates a fund for policyholder education and protection. The composite licence was dropped.

ExampleBefore the Act, foreign ownership was capped at 74%; now a foreign insurer can own an Indian insurer outright.

Bima Sugam is the digital marketplace. Bima Vistaar is a simple bundled product covering life, health, accident and property. Bima Vahaks are women-led local distributors in rural areas.

ExampleA rural family buys Bima Vistaar through a Bima Vahak in their village, covering life, accident, health and their home in one policy.

Penetration is total premium as a share of the economy. India's is well below the global average, which is why distribution and access reforms dominate policy.

ExampleMis-selling shows up as early surrenders and free-look cancellations, which is why IRDAI watches persistency and complaints closely.

Individual policies became exempt from GST. Insurers lost input tax credit on related costs as a result, and some adjusted premiums to reflect that.

ExampleThe ₹15,232 family floater on the Calculators tab would have cost ₹17,974 with 18% GST before the change.

Only individual life and health policies changed. Systems must apply the rate by product and policy type, not by line of business alone.

ExampleThe default car quote: net ₹12,620 plus GST of ₹2,272.

On a goods vehicle policy, the TP part now carries 5% and the OD and add-ons 18%, so invoices show two GST lines.

ExampleThe default goods vehicle quote: GST 18% ₹1,478 plus GST 5% ₹1,362, for a total of ₹38,290.

The deduction is up to ₹25,000 a year for self and family, or ₹50,000 if senior, and is available only under the old tax regime.

ExampleA 35-year-old on the old regime paying ₹15,232 for a family floater can deduct the full amount; on the new regime they get no deduction.

Phase 1 covers comparing, buying and renewing policies and a single e-insurance account. Claims and portability follow in phase 2, with full go-live guided for about November 2026.

ExampleA customer compares term plans from several insurers, buys one, and sees all their policies in one e-insurance account.

Bima Pehchaan links all of a person's policies to one ID. Bima Bharosa is IRDAI's system for registering and tracking complaints against any insurer.

ExampleAfter a death, the family can find every policy linked to the person's ID instead of searching through paperwork.

NHCX standardises claim messages. Central KYC (CKYC) lets an insurer reuse KYC already done elsewhere. Account Aggregators share financial data with the customer's consent.

ExampleA term proposal pulls six months of bank statements through an Account Aggregator, with consent, to verify income for financial underwriting.

The Digital Personal Data Protection Act requires a clear purpose for each use of personal data, valid consent where needed, deletion when the data is no longer needed and prompt breach reporting.

ExampleA marketing campaign to people who once asked for a quote needs a recorded consent for marketing, not just the consent given to produce the quote.

The new standard changes how insurers measure contracts and spreads profit over the life of the contract. It needs data grouped by product, year of issue and expected profitability.

ExampleFinance BAs map policy and claims data into 'groups of contracts' so actuaries can calculate the new figures.

Capital will depend on the actual risks an insurer carries, such as underwriting, market, credit and operational risk, instead of a simple formula.

ExampleAn insurer with a riskier investment portfolio will need to hold more capital than one with mainly government bonds.