Irdai grants licence to ProTec General Insurance, fourth approval in 2026 | Insurance News

The Insurance Regulatory and Development Authority of India (Irdai) has approved a licence for ProTec General Insurance, a joint venture between the M Pallonji Group and True North’s Divya Sehgal, marking the regulator’s fourth insurance licence approval in calendar year 2026.

“Approval was also accorded for the grant of Certificate of Registration to M/s ProTec General Insurance Limited, enabling the company to undertake general insurance business in accordance with the applicable regulatory framework,” Irdai said in a statement on Wednesday.

Earlier this year, the regulator granted licences to Kiwi General Insurance, Prudential HCL Health Insurance and Allianz Jio Reinsurance.

Irdai said the new licences underscore strong investment interest in the Indian insurance sector and the momentum generated by reforms under the Sabka Bima Sabki Raksha (SBSR) Act.

Following the amendment allowing 100 per cent foreign investment in the insurance sector, one life insurer and one general insurer have increased their foreign shareholding beyond the earlier 74 per cent cap to full ownership, Irdai said.

The regulator said this signals greater investor confidence and could facilitate higher capital inflows into the sector.

At its board meeting, Irdai also approved a series of regulatory reforms aimed at giving insurers greater operational and financial flexibility. These include liberalised investment norms and streamlined processes for capital infusion, restructuring, share transfers and amalgamations, alongside stronger actuarial oversight and financial governance.

The regulator also operationalised the Policyholders’ Education and Protection Fund (PEPF), aimed at promoting insurance awareness, strengthening grievance redressal, improving services through technology and facilitating the recovery of unclaimed insurance amounts.

For insurance intermediaries, Irdai mandated the tagging of authorised salespersons to every insurance proposal and policy to improve accountability and traceability across the distribution process and strengthen regulatory oversight.

Irdai also replaced periodic renewal of intermediary licences with perpetual registration backed by an annual fee regime. The changes aim to reduce the compliance burden, align regulations with the SBSR Act and Foreign Investment Rules, and strengthen governance through enhanced disclosure and accountability.

The regulator also approved the Manner and Procedure for Imposition of Penalties Regulations, 2026, establishing a framework for imposing penalties under the Insurance Act, 1938, and the IRDA Act, 1999. Irdai said the regulations are intended to bring greater consistency, fairness, regulatory certainty and accountability to enforcement.