The Ministry of Finance, Department of Financial Services, issued Notification G.S.R. 652(E) on July 23, 2026, publishing the draft Insurance Rules, 2026 to supersede the Insurance Rules, 1939, according to TaxGuru on July 25. Issued under Section 114 of the Insurance Act, 1938, the draft rules are open for public objections and suggestions for 30 days.
The draft mandates specific disclosures regarding risks, rebates and Section 41 in prospectuses, premium tables and proposal forms; defines conditions for bona fide insurance agents across life, health, property or liability risks; prescribes Forms I and II for declarations on share ownership and beneficial interest under Section 6A; establishes procedures for search and seizure under Section 34H; and empowers the Authority to suspend, cancel, reconstruct or wind up insolvent insurers.
Under Section 64VB(1), the draft outlines relaxations for advance premium payments for government policies, health, fidelity, marine, aviation, motor third-party and disaster-affected renewals — including instalment acceptance for sickness, group personal accident and hospitalisation schemes.
Source: TaxGuru / Ministry of Finance Notification G.S.R. 652(E) (July 25, 2026)