Promoting Prudent Practices In Risk Management Related To Outsourcing Activities By Insurers

To safeguard the interest of policyholders and offer guidelines to insurers while outsourcing certain activities, IRDAI issued IRDAI (Protection of Policyholders' Interests and Allied Matters of Insurers) Regulations, 2024 ("PPIA Regulations").¹ These regulations consolidate 8 (eight) regulations² into a unified structure, focusing on several key objectives that ensure fair treatment of prospects during solicitation and sale of insurance policies as well as protects the interests of policyholders throughout their engagement with insurers and distribution channels. Some of the broad obligations of the insurers/ distribution channels are as follows:

1. provide the customer information sheet along with the policy document in the specified manner;