At its 137th Authority Meeting on July 28, 2026, IRDAI approved the regulations that bring the Policyholders' Education and Protection Fund (PEPF) to life. Constituted under Section 16A of the IRDA Act, 1999 (as introduced by the SBSR Act), PEPF is India's answer to a long-standing problem: money owed to policyholders that never reaches them.
What PEPF Actually Does
The fund has four mandates: promoting insurance awareness and literacy initiatives; strengthening grievance redressal mechanisms; leveraging technology to improve policyholder services; and — most importantly for ordinary buyers — facilitating the tracing and recovery of unclaimed insurance amounts, including unclaimed policy benefits and amounts payable to beneficiaries.
Why Unclaimed Amounts Matter
Over the years, substantial sums have accumulated as unclaimed policy proceeds — matured policies never claimed, death benefits awaiting nominees who didn't know they existed, and refunds stuck in administrative loops. IRDAI had earlier reported unclaimed amounts running into thousands of crores across life and non-life insurers. PEPF creates an institutional home and a technology-led process to trace owners and return the money, complementing insurer-level efforts and the Bima Sugam ecosystem.
What It Means for You
If you've ever had a lapsed policy, an unclaimed maturity, or a nominee who never filed a claim, PEPF is the mechanism that will hunt for you rather than the other way around. It also funds the education push behind 'Insurance for All' — the awareness and grievance infrastructure that the SBSR Act's broader reforms are built upon. It's the quiet, structural piece of the July 2026 reform package that policyholders will feel for decades.
Source: IRDAI Press Release (July 29, 2026)