IRDAI – Insurance Intermediaries (Transitional arrangements for payment of Annual Fee and issuance o

The Insurance Regulatory and Development Authority of India (“ IRDAI ” or “ Authority ”) has released a Circular dated March 16, 2026 bearing Ref. No. IRDAI/INT/CIR/MISC/41/3/2026 specifying the transitional arrangements relating to the payment of annual fee and issuance of certificate of registration of insurance intermediaries (“ Circular ”).

The Circular is issued in exercise of powers conferred under sub-section (4A) of Section 42D of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 (“ SBSR Act ”) effective from February 5, 2026.

The key highlights of the Circular are as follows:

1. Applicability

The Circular is applicable to the following insurance intermediaries:

• Insurance Brokers
• Corporate Agents
• Insurance Marketing Firms (IMFs)
• Web Aggregators
• Common Service Centres (CSCs)
• Insurance Surveyors and Loss Assessors
• Insurance Repositories
• Third Party Administrators (TPAS)
• Any other entities registered as insurance intermediaries under applicable regulations.

2. Background

The SBSR Act amended Section 42D of the Insurance Act, 1938 to provide that registration granted to an insurance intermediary shall remain inforce until the Certificate of Registration (“ CoR ”) is suspended or cancelled by the Authority, subject to payment of such annual fee as specified by regulation.

3. Discontinuation of Renewal Framework

Post commencement of SBSR Act from February 5, 2026 the prior framework providing a three-year validity of the CoR and payment of renewal fee of insurance intermediaries stands discontinued.

Thus, registration of insurance intermediaries shall be subject to payment of annual fee in accordance with the amended provisions of Section 42D of Insurance Act, 1938 and the regulations framed thereunder.

4. Interim Annual Fee – Transitional Arrangement

• The insurance intermediaries who are granted fresh registration or renewal of CoR during the period of February 5, 2026 to June 30, 2026, they shall pay the interim annual fee at the time of issuance of CoR.
• The interim annual fee applicable for the transitional period is specified under point 7 below.
• Further, the interim arrangement is applicable till the new framework is in force through regulations. The interim arrangement applies to the following:
  • A. insurance intermediaries granted fresh registration during the period 5th February 2026 to 30th June 2026; and
  • B. insurance intermediaries whose renewal of CoR falls due within the same period.

5. Adjustment of fees for applications approved on or after February 5, 2026

In cases where renewal of CoR has been granted on or after February 5, 2026 and where the renewal fee had already been remitted prior to such renewal, the fee so collected shall be adjusted against the interim annual fee payable, and the balance amount shall be refunded.

6. Removal of difficulties

The Authority may issue further clarifications or directions, as may be necessary, for the removal of any difficulties in implementation of sub-section (4A) of Section 42D of the Insurance Act, 1938.

7. Interim Annual Fee Structure (Transitional Arrangement)

A copy of the Circular is attached herewith for your ready reference.

Source category: IRDAI

Attachments

• IRDAI (Intermediary) Transitional arrangements for payment of Annual Fee and issuance