Irdai proposes perpetual registration framework for TPAs under SBSR Act

The regulator has proposed a transition framework for existing third-party administrators, along with an annual fee mechanism under the SBSR Act regime

The Insurance Regulatory and Development Authority of India (Irdai) on Friday proposed amendments to the Third Party Administrator (TPA) regulations to align them with the Sabka Bima Sabki Raksha (SBSR) Act, 2025, including a framework for transitioning existing TPAs to perpetual registration.

 

TPAs holding certificates of registration issued before the SBSR Act came into force may apply for continuation of registration and issuance of a new certificate within 90 days before their existing three-year registration expires, upon payment of an annual fee, Irdai said in an exposure draft.

 

The regulator has proposed an annual fee of ₹50,000, plus applicable taxes, payable by January 31 each year for the ensuing financial year.

 

 

TPAs missing the deadline may pay the fee by March 31 along with interest of 2 per cent on the annual fee. Failure to pay the fee and interest by March 31 would amount to a breach of registration conditions and attract regulatory action.

 

The draft regulations have been placed in the public domain for comments until July 10.