The Insurance Regulatory and Development Authority of India (IRDAI) has scrapped the requirement for prior regulatory approval for majority foreign-owned insurance intermediaries seeking to repatriate dividends to overseas shareholders. The change follows a circular issued on September 23, 2026, and also removes the earlier cap on dividend payout ratios.
The move effectively withdraws the additional approval layer that had applied to foreign-majority-owned insurance intermediaries. The earlier framework, introduced in 2020, required such entities to obtain IRDAI approval before repatriating dividends and imposed conditions relating to payments to related parties. IRDAI has now withdrawn these requirements following the IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, which removed the underlying requirements. The repeal is effective retrospectively from July 30, 2026.
The change applies to insurance intermediaries covered by the earlier framework, including insurance brokers and other regulated intermediary categories with majority foreign ownership. It simplifies dividend distribution and capital-management procedures for these entities at a time when foreign investment in India’s insurance sector has been liberalised. In May 2026, the government had already permitted 100% foreign direct investment in insurance companies and intermediaries through the automatic route, subject to applicable regulatory conditions.
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