AI In The Indian Insurance Market: Regulatory Preparedness

India has formally moved to regulate deepfakes and AI generated content by notifying the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026.

On June 3, 2026, the Supreme Court of India’s AI Committee released preliminary draft of the Regulations for Use of Artificial Intelligence (AI) in Courts, 2026 (“The Draft”). This marks a shift from scattered experiments with AI tools for translation, transcription, research and case management. With over 93,000 pending matters as of March 2026, the guidelines aim to ease processes for officials and citizens. AI could help reduce backlogs through automated cause-list preparation, transcription, research, and defect scrutiny, but its use also raises serious concerns.

The Supreme Court of India, through notice dated 03.06.2026, has published the draft Regulations for use of Artificial Intelligence in Courts, 2026 (“Draft AI Regulations”). Comments and suggestions from all stakeholders and the general public are invited on the Draft AI Regulations by 20.06.2026

In a seismic event that has rattled the foundations of India's cryptocurrency landscape, WazirX, the nation's largest cryptocurrency exchange, suffered a devastating cyberattack that resulted in the theft of over $240 million in investor funds.

India's fintech market is one of the fastest growing in the world, and it shows no sign of slowing down. Estimates put the market at about USD 145 billion at the end of 2025, growing at a compound annual rate of 30.55% to reach roughly USD 550 billion by 2030. India's fintech adoption rate is around 87%, reportedly the highest anywhere and well above the global average of roughly 64% to 67%. Add the world's second-largest digital population and the runway looks long.

In a rare use of its extraordinary powers under Article 142 of the Constitution of India, the Supreme Court heard a curative petition filed by DMRC, challenging an earlier order that had upheld the arbitral award. The judgment brings finality to a decade-long contractual dispute that began in 2013 with arbitration proceedings.

Between May and August 2026, AI regulation has continued to develop rapidly, with a focus on accountability, transparency, human oversight and protection against AI-related harms.

On May 21, 2025, the NPCI introduced new guidelines to streamline the Unified Payments Interface ("UPI") and its Application Programming Interface ("APIs"), effective August 1, 2025.

Cybersecurity regulation in India has, until now, largely spoken to the entity that suffers the breach. The 2022 CERT-In Directions issued under Section 70B of the Information Technology Act, 2000 fixed a six-hour reporting clock on the organisation that detects an incident. The new Guidelines flip the lens onto the entity upstream of that breach, the OEM or technology provider that built the product in the first place. For the first time, vendors supplying software, firmware, cloud platforms, or APIs into India carry direct, time-bound, and independently verifiable obligations of their own and not obligations that are merely passed through a customer contract, but obligations CERT-In itself may enforce.

On October 27, 2025, OpenAI published a report on its platform stating that approximately 0.15% of the ChatGPT users exhibit suicidal thoughts or psychosis and seek advice on way and methods of self-harm.

The visual interface of ecommerce platforms increasingly influences how consumers select, purchase, subscribe to and cancel goods and services. Before the issuance of a framework specifically addressing dark patterns, the Consumer Protection Act 2019 (“Consumer Protection Act”) and the Consumer Protection (E-Commerce) Rules 2020 (“E-Commerce Rules”) already prohibited unfair trade practices in e-commerce.

On 23 September 2026, the IRDAI proposed major changes for the insurance distribution landscape through its Consultation Paper on “Recalibrating Economics of Insurance Distribution” (“Paper”).

The IRDAI has introduced a new regulatory framework that streamlines turnaround times for the various activities and services conducted by Indian Insurance Companies, replacing the previous regulatory regime.

A 5 Judge Bench of the Supreme Court in National Insurance Company Limited v Pranay Sethi, has laid down guidelines on the fixation of future prospects in cases of motor accidents for victims who are permanently employed, receiving a fixed salary, or self-employed.

The dispute in FW Aviation (Holdings) 1 Limited v VietJet Aviation Joint Stock Company1 has been decided through three substantial judgments of the English Commercial Court (“English Court”). Together, they address whether the aircraft leases were validly terminated, sums payable as a result of termination, and the extent to which damages could be claimed for losses arising from the condition, detention and delay in eventual export of the aircraft.

The IRDAI first introduced the regulatory sandbox framework in 2019 with the objective of permitting controlled experimentation in the insurance sector while maintaining policyholder protection and orderly market development.

With the IRDAI's vision of "Insurance for All by 2047" driving the regulatory overhaul, 2024 has been a pivotal year for the insurance sector, particularly for Insurers.

Insurance business in India has historically been subject to several restrictions in terms of the amounts Insurance Companies are permitted to spend on certain activities, including...

On 8 March 2021, the Supreme Court issued its final order. It said that the extension had served its purpose and should come to an end

Various press reports have highlighted the exponential growth within India's aviation sector.