In exercise of the powers conferred under sub section (1) of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, and

REGD. No. D. L.-33004/99 The Gazette of India CG-GJ-E-15062026-273458 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 395] NEW DELHI, FRIDAY, JUNE 12, 2026/JYAISTHA 22, 1948 INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY NOTIFICATION Gandhinagar, the 8th June, 2026 INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (MANAGING GENERAL AGENTS) REGULATIONS, 2026 IFSCA/GN/2026/ 010.— In exercise of the powers conferred under sub-section (1) of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, and Section 42D, 42E and 118A of the Insurance Act, 1938, the International Financial Services Centres Authority hereby makes the following regulations, namely: - CHAPTER I PRELIMINARY 1. Short title and Commencement (1) These regulations may be called the International Financial Services Centres Authority (Managing General Agents) Regulations, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Objective These regulations aims to provide a comprehensive regulatory framework for the registration, regulation and operation of Managing General Agents (MGAs) operating in International Financial Services Centres (IFSCs) in India, which possess delegated authority from the foreign insurer(s) for underwriting direct insurance business or settlement of claims, ensuring they operate with transparency and accountability to protect policyholders' interests and support the orderly growth and development of the insurance ecosystem in the IFSCs. 3. Definitions (1) For the purposes of these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned to them below, and their cognate expressions shall be construed accordingly, - (a) 'Act' means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) 'Applicant' means – (i) a body corporate incorporated outside India and authorised by foreign insurer(s) under a written contract to manage part of its direct insurance business including solicitation, underwriting risks and/or settling the claims; or (ii) a company incorporated under the Companies Act, 2013 (No. 18 of 2013); Explanation. - For removal of doubts, it is clarified that the term 'body corporate' under this clause shall not include Limited Liability Company. (c) 'Authority' means the International Financial Services Centres Authority established under sub- section (1) of Section 4 of the Act; (d) 'Binding Authority Agreement (BAA)' means a written contract executed between an MGA and a foreign insurer under which a foreign insurer authorises the MGA to act as an agent and to enter into a contract of insurance on its behalf; setting forth the terms, conditions for binding insurance risks or settlement of claims; (e) 'Board of the Applicant' means a 'Board' as defined under the Companies Act, 2013 (No. 18 of 2013) or a body discharging equivalent functions, by whatever name called; (f) 'Competent Authority' means: (i) Chairperson; or (ii) such Whole-Time Member or such Committee of the Whole-Time Members or Officer (s) of the Authority, as may be determined by the Chairperson. (g) 'Domestic Tariff Area (DTA)' means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones; (h) 'Fiduciary Account' means a designated account against each foreign insurer, maintained by an MGA, with an IFSC Banking Unit exclusively for holding premiums or claim settlements, or both on behalf of such foreign insurer; (i) 'Gross Written Premium (GWP)' means the total amount of premium received by an MGA on behalf of foreign insurer(s); (j) 'Foreign Insurer' means a body corporate incorporated under the law of any country outside India and duly registered with its home country regulatory or supervisory authority for transacting direct insurance business; (k) ‘International Financial Services Centre (IFSC)' shall have the same meaning as assigned to it under clause (g) of sub-section (1) of section 3 of the Act; (l) 'IFSC Banking Unit (IBU)' means a unit licensed by the Authority to undertake permissible activities under International Financial Services Centres Authority (Banking) Regulations, 2020; (m) 'Managing General Agent (MGA)' means an insurance intermediary registered under these regulations; (n) 'MGA Qualified Person (MQP)' means an individual who is an employee or director of the MGA engaged in solicitation, underwriting risks and/or settlement of claims of direct insurance business, and who has undergone such training and passed such examination as may be specified by the Competent Authority; (o) 'Net Worth' shall have the same meaning assigned to it in the Companies Act, 2013 (18 of 2013); (p) 'Principal Officer' means a designated employee of the MGA responsible for day-to-day affairs or conduct of its overall activities, including regulatory compliances of an MGA; Explanation.- In case of an MGA set up in form of a branch in the IFSC, the expression 'Principal Officer' shall be construed as 'Branch Head'. (q) 'Specified Foreign Currency' means the currencies specified in the First Schedule of the International Financial Services Centres Authority (Banking) Regulations, 2020, as amended from time to time; and (r) 'Underwriting' refers to the process of accepting or rejecting insurance risk or insurance liability by an MGA on behalf of the foreign insurer. (2) Words and expressions used and not defined in these regulations but defined in the Act or Insurance Act, 1938 (4 of 1938) or Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or Companies Act, 2013 (18 of 2013) or any rules, regulations made thereunder, shall have the same meanings respectively assigned to them in those Acts, rules or regulations or any statutory modification or re-enactment thereto, as the case may be. CHAPTER II ELIGIBILITY AND REGISTRATION 4. Eligibility criteria (1) An Applicant registered or licensed to undertake activities akin to an MGA in a jurisdiction outside India, and desirous of setting up branch in an IFSC shall meet with the following requirements: (a) It holds a valid certificate of registration or license issued by its home country regulatory or supervisory authority to undertake activities akin to an MGA; (b) It has acted as an agent to undertake activities akin to MGA including solicitation, underwriting risks and/or settling the claims for direct insurance business; (c) It is registered or certified in a National Regulatory Environment with whom the Government of India has signed Double Taxation Avoidance Agreement; and (d) It has obtained 'No-objection certificate' from its home country regulatory or supervisory body to establish a branch in IFSC. (2) Applicants other than those covered under sub-regulation (1), shall be incorporated under the Companies Act, 2013 (18 of 2013) in the IFSC. (3) An Applicant shall at the time of filing application shall have at least one written contract with a foreign insurer to manage part of their direct insurance business including an authority to solicit, underwrite risks and/or settle the claims. (4) An Applicant having written contract with a foreign insurer to manage part of their direct insurance business including solicitation, underwriting risks and/or settling the claims shall ensure that such foreign insurer – (a) is registered or licensed for transacting direct insurance business, in its home country or country of its incorporation or domicile; (b) has satisfactory track record in respect of regulatory or supervisory compliance in its home country or country of incorporation or domicile and also in any other country in which it is functioning; (c) has minimum Net Worth of USD 100 Million; (d) has a minimum credit rating of 'A' or its equivalent from any of the internationally renowned credit rating agencies for the last three years from the date of filing application under these regulations; (e) is registered or certified in a National Regulatory Environment with whom the Government of India has signed Double Taxation Avoidance Agreement; (f) submits Board resolution undertaking to meet all liabilities arising out of Applicant's operations in the IFSC; (g) submits all the details and information as may be required and complies with any additional requirements as may be specified by the Competent Authority; and (h) submits undertaking(s) to comply with the provisions of regulation 22 of these regulations. (5) The Applicant entity, the foreign insurer(s) and their promoters, partners or controlling shareholders shall be from a jurisdiction which has not been identified in the public statement of Financial Action Task Force (FATF) as “High-Risk Jurisdiction subject to call for action”. (6) An Applicant executing or proposing to execute written contract with more than one foreign insurer to manage part of their direct insurance business including solicitation, underwriting risks and/or settling the claims shall ensure that above provisions are complied by each such foreign insurer. 5. Procedure for making application (1) An Applicant desirous of obtaining a certificate of registration from the Authority as an MGA shall submit an application in such form and be accompanied by such documents as may be specified by the Competent Authority, along with the applicable fee specified under regulation 29 of these regulations, on the online platform designated by the Authority. (2) The Competent Authority may require the Applicant to furnish any additional information or clarification for considering the Application. (3) An Applicant after filing of application shall forthwith bring to the notice of the Competent Authority, on its own, such further information or clarification, which might have a bearing on consideration of its application. (4) If the Competent Authority, upon examination of the application, is of the opinion that the registration cannot be granted, it shall communicate the deficiencies to the Applicant giving it thirty (30) days' time to rectify them. (5) If the Applicant fails to rectify such deficiencies to the satisfaction of the Competent Authority within the specified time, the Competent Authority may dispose the application and shall communicate the same to the Applicant, with reasons thereto; Provided that no such refusal shall be made by the Competent Authority without giving the Applicant an opportunity to make written submissions on the grounds on which the registration is proposed to be refused. (6) Notwithstanding anything contained in these regulations, while granting registration, the Competent Authority may impose additional conditions to be complied with by an MGA. 6. Consideration of application for obtaining Certificate of Registration- (1) No person shall act as an MGA without obtaining a certificate of registration from the Competent Authority under these regulations. (2) The Competent Authority shall, while examining the application, consider all matters which are necessary for carrying out the functions of an MGA, including but not limited to the following: (a) whether the Applicant undertakes to fulfil the capital and Net Worth requirements as specified in regulation 13 of these regulations to the satisfaction of the Competent Authority; (b) whether the Applicant has the requisite underwriting and/or claims processing competence and personnel having necessary qualification and experience, as may be specified by the Competent Authority; (c) whether the Principal Officer, promoters, directors, and KMPs/controlling shareholders are 'Fit and Proper persons' as per the criteria specified by the Competent Authority; (d) whether the Applicant has proposed to appoint a Principal Officer who shall be in direct employment of the MGA and resident in India; (e) whether the Applicant has adequate office space, IT systems, and data security protocols within the IFSC to effectively discharge its activities, that is commensurate with the proposed operations; and (f) whether the issue of certificate of registration to the Applicant will be in the interest of policyholders. 7. Procedure for issuance of Certificate of Registration (1) On consideration of the application, the Competent Authority may grant in-principle approval to the applicant, subject to satisfaction that the Applicant has fulfilled the conditions as specified under sub- regulation (2) of regulation 6 of these regulations and upon payment of applicable fees. (2) The Competent Authority on being satisfied with the compliance under sub-regulation (1) and also with other compliances under these regulations, including capital requirement, Net Worth requirement and professional indemnity policy, may issue a certificate of registration. (3) Registration granted under these regulations shall remain in force subject to conditions as specified under these regulations, until such registration is suspended or cancelled by the Competent Authority. 8. Conditions upon issuance of Certificate of Registration - The registration granted to an MGA under these regulations shall, inter-alia, be subject to the following conditions, that it shall (1) exclusively carry on the business for which the registration has been granted, in the manner as specified in Schedule-I of these regulations; (2) comply with the provisions of sub-section (5) of section 42D of the Insurance Act, 1938 (4 of 1938); (3) comply with the applicable laws; (4) have at all times, a valid and subsisting BAA with the foreign insurer(s) in accordance with the regulation 20 of these regulations; (5) at all times, comply with the eligibility criteria as specified under regulation 4 of these regulations; (6) comply with the International Financial Services Centres Authority (Anti Money Laundering, Counter- Terrorist Financing and Know Your Customer) Guidelines, 2022; (7) have at all times, a valid and subsisting Letter of Approval (LoA) from the Administrator (IFSCA) under the Special Economic Zones Act, 2005 (28 of 2005); (8) forthwith inform the Competent Authority in writing, if there is any material change in the information already submitted; (9) take adequate steps for redressal of grievances in accordance with the Circular titled "Complaint Handling and Grievance Redressal by Regulated Entities in the IFSC" dated December 02, 2024; (10) solicit and procure insurance policies commensurate with its resources; (11) maintain records in the format specified by the Competent Authority which shall capture details of each policy managed by an MGA and against each policy the authorised person(s) managing the same shall be identified, wherever applicable; (12) under no circumstances, undertake multi-level marketing for solicitation and procuring direct insurance business; (13) comply with the Code of Conduct as specified under regulation 18 of these regulations; (14) maintain such books of accounts as specified under these regulations; (15) ensure that its shares held by any of its shareholder are not pledged to secure any form of credit facilities, and remain unencumbered at all times; and (16) any other condition(s) as may be specified by the Competent Authority. 9. Commencement of business- (1) An MGA shall commence business within a period of one hundred eighty (180) days from the date of grant of certificate of registration by the Competent Authority; Provided that, if an MGA fails to commence business within the said period, it can, before the expiration and at least thirty (30) days prior to such expiry, make an application to the Competent Authority seeking extension of time. (2) Upon receipt of an application under sub-regulation (1), the Competent Authority may examine the same and communicate the decision there on, in writing to such applicant; Provided that no extension of time shall be granted by the Competent Authority beyond eighteen (18) months from the date of grant of certificate of registration. CHAPTER III REQUIREMENTS FOR AN MGA 10. Scope of Operations - (1) An MGA is permitted to undertake the activities of direct insurance business in the IFSC, outside India, or both. (2) An MGA shall not solicit direct insurance business from the Domestic Tariff Area (DTA) in India, except in accordance with Section 2CB of the Insurance Act, 1938 (4 of 1938). (3) An MGA shall undertake direct insurance business, in accordance with the provisions of these regulations, including any terms and conditions stipulated under the certificate of registration. (4) An MGA shall carry out its operation in any of the Specified Foreign Currencies; Provided that, an MGA may open an INR account to defray its administrative and statutory expenses and for such other purposes as may be permitted under the applicable laws. 11. Prohibited activities - An MGA is prohibited from: (1) entering into binding re-insurance or retrocessions contracts on behalf of the foreign insurer; (2) participating in insurance or reinsurance syndicates; (3) assigning the contract in whole or part, or further delegating its underwriting or claims authority to any other entity or any other person as the case may be; and (4) jointly employing an individual who is employed with the foreign insurer. 12. Executing BAA with other foreign insurer(s) – An MGA executing BAA with another foreign insurer(s), shall mutatis mutandis comply with provisions of sub-regulations (3), (4) and (5) of regulation 4 and regulation 20 of these regulations. Explanation. - An MGA shall, at all times, maintain above-referred documents and shall submit the same as and when sought by the Competent Authority. 13. Capital and Net Worth Requirements (1) An MGA, set up in the form of a company, shall maintain a minimum paid-up equity capital equivalent to USD 5,00, 000 (USD Five Lakh only) with an IBU. (2) An MGA, set up in the form of a branch, shall maintain a minimum assigned capital equivalent to USD 5,00, 000 (USD Five Lakh only) with an IBU. (3) An MGA shall maintain Net Worth of minimum equivalent to USD 250,000 (USD Two Lakh Fifty Thousand only) or 50% of the minimum paid-up or assigned capital, whichever is higher, at all times. Explanation. - For avoidance of doubts, it is clarified that an MGA set up in form of a branch shall maintain Net Worth at its parent level. (4) In case of any shortfall in Net Worth as required under sub-regulation (3) above, the MGA shall immediately restore the same and report compliance of the same within a period of fifteen (15) days to the Competent Authority. (5) The investment made by the promoters/ shareholders in an MGA shall be from their owned funds and not from any other sources; Explanation. - For the purpose of this sub-regulation, owned funds shall not include funds arranged by way of borrowings or loans. (6) An MGA shall submit a paid-up capital and Net Worth certificate issued by its statutory auditor or an independent Company Secretary on annual basis, to the Competent Authority. 14. Professional Indemnity An MGA shall purchase and maintain, at all times, a professional indemnity insurance cover throughout the validity of its registration in accordance with the Schedule-III of these regulations; Provided that an MGA in branch form shall maintain the professional indemnity insurance policy at its head office and shall have endorsement on such insurance policy to the effect that liabilities if any, arising out of operations at the IFSC branch office are also covered in such policy. 15. Financial security and Deposit requirements (1) An MGA shall, before the commencement of their business, deposit and keep deposited with any IBU, with lien marked in favour of the Authority, a sum equivalent to (a) USD 10,000 (USD Ten thousand only), which shall not be released without the prior written permission of the Competent Authority; and (b) 10% of the minimum paid-up equity capital or assigned capital as specified under regulation 13 of these regulations, which shall not be released without the prior written permission of the Competent Authority; Provided that the Competent Authority may impose a separate limit of deposit, in any case not exceeding USD 1,00,000 (USD One Lakh only). Explanation. - For removal of doubts, it is clarified that the interest earned on such deposit shall not be subject to lien with the Authority. (2) An MGA shall furnish to the Competent Authority, as and when called upon to do so, a non- encumbrance statement from the IBU with which such deposit is maintained. (3) The Competent Authority may appropriate such amount from the deposit maintained in accordance with sub-regulation (1), as required to settle unpaid 'Courts/Ombudsman Awards' or 'Claims under adjudication' in case liquidation proceedings are initiated against the concerned MGA. CHAPTER IV OPERATIONS, CODE OF CONDUCT AND MANAGEMENT 16. Ownership and control of shares- Any change(s) in the beneficial ownership of shares or contribution and control of the MGA shall be made only with prior approval of the Competent Authority and in such manner and process as may be specified by the Competent Authority. 17. Board approved policy (1) An MGA shall have a Board approved policy containing the manner of soliciting, underwriting risks, settlement of claims of direct insurance business and acceptance of risk servicing insurance policies including suitability requirements. (2) The Board approved policy shall, inter-alia, include the approach to be followed by an MGA in having multiple tie-ups, type of products sold, mode of solicitation, grievance redressal mechanism, reporting requirements and any other requirement with regard to different business segments. (3) The Board approved policy shall be reviewed at least once in every three (3) years by its Board by whatever name called. 18. Code of conduct - An MGA shall perform its functions and duties, and exercise its delegated authority, in strict adherence to the Code of Conduct and operational standards specified in Schedule-II of these regulations. 19. Internal control and systems An MGA shall develop and maintain a suitable internal control system, including an audit system, commensurate with the size, nature, scale and complexity of its business operations. 20. Binding Authority Agreement (BAA) (1) An MGA shall not solicit business, underwrite risks or settle claims on behalf of a foreign insurer, unless a BAA containing the clauses as specified under Schedule-IV of these regulations is executed with the concerned foreign insurer and submitted to the Competent Authority. (2) The BAA shall, inter-alia, explicitly include the following: - (a) classes of direct insurance business, territorial limits and maximum limits of liability per risk; (b) underwriting guidelines and the basis of rates to be charged; (c) underwriting capacity allocated by the foreign insurer to an MGA; and (d) foreign insurer's right to terminate or suspend the BAA, including the details of the person authorized to terminate or suspend the BAA during the pendency of dispute, if any and the ground of termination or suspension of BAA. (3) The BAA shall strictly delineate 'Claims Processing' and 'Claims Settlement' as separate activities that may be undertaken by an MGA. (4) Where the authority to settle claims has been granted, an MGA shall settle claims in accordance with the monetary limit per claim and an aggregate limit as specified in the BAA; Provided that any claim exceeding USD 10,000 (USD Ten Thousand only) or involving a coverage dispute shall be referred to the concerned foreign insurer for prior approval. 21. Fiduciary Accounts and premium segregation (1) Where an MGA is permitted to collect the premium and remit the same to the foreign insurer and/or collect the claims due from the foreign insurer in order to pass on to the policyholder(s), the money thus collected shall be maintained in a Fiduciary Account. (2) The money collected by an MGA in the Fiduciary Account shall be segregated from other accounts maintained by such MGA. (3) The money collected by an MGA in the Fiduciary Account shall only be used for the permitted purposes and shall not be used for any other purposes. (4) An MGA shall not retain more than three (03) months' worth of losses and loss adjustment expenses in the Fiduciary Account, and any such surplus amount shall be remitted to the foreign insurer, monthly. (5) The money held in the Fiduciary Account, being the money of policyholders or of the foreign insurer, as the case may be, shall not be liable to attachment or be part of the assets of the MGA in the event of its insolvency or liquidation. (6) The Fiduciary Account shall only be used for the following purposes- (a) Credits: Receipt of premiums from policyholders; receipt of claim funds/return premiums from foreign insurers; and interest earned on such funds (subject to the BAA); (b) Debits: Remittance of premiums to foreign insurers; payment of claims/refunds to policyholders; and withdrawal of commission as per the BAA. (7) An MGA shall submit a certificate issued by its statutory auditor to the Competent Authority on half yearly basis confirming compliance with fund segregation requirements specified under these regulations. 22. Duties of foreign insurer(s) and their operational oversight- (1) The foreign insurer who has executed the BAA with an MGA shall (a) conduct an independent annual audit of the records of the MGA to satisfy that the MGA complies with the BAA and the Net Worth requirements as specified under these regulations; and (b) conduct an on-site review of the MGA's underwriting and claims processing at least on a half yearly basis. (2) If an MGA establishes loss reserves, the relevant foreign insurer shall annually obtain the opinion of an independent actuary certifying their adequacy. Explanation. - For removal of doubts, it is clarified that the above requirement shall be in addition to any other required loss reserve certification. 23. Maintenance of books of accounts and records- (1) An MGA set up in the form of a company, shall prepare and maintain the following financial statements- (a) a balance sheet as at the end of each financial year; (b) a profit and loss account for that period, which shall be maintained on accrual basis; (c) a statement of cash/fund flow (direct method) for that period; and (d) additional statements on its business as may be specified by the Competent Authority. Explanation. - (i) For the purposes of this regulation, the financial year for an MGA in form of a branch in the IFSC shall refer to the financial year as specified by its home country's regulatory or supervisory authority; (ii) the financial year for an MGA set up in the form of a company shall refer to a period of twelve (12) months commencing from 1st April and ending on the 31st March. (2) An MGA in branch form shall prepare and maintain the financial statements in accordance with the accounting standards as specified by its home country regulatory or supervisory authority. (3) An MGA shall submit to the Competent Authority the audited financial statements within a period of thirty (30) days of the annual general meeting on or before 30th September every year, whichever is earlier, along with director's report, as applicable, the remarks or observations of the auditor, if any, on the conduct of the business, state of accounts, etc. (5) An MGA shall take steps to rectify the deficiencies, if any, made out in the auditor's report, and inform the Competent Authority about the same within a period of ninety (90) days from the date of the auditor's report. (6) All the financial statements and relevant documents shall be maintained at the office of the MGA in the IFSC and shall be available for inspection by the Competent Authority. (7) All claim files shall be the joint property of the foreign insurer and the MGA; Provided that upon an order of liquidation of the foreign insurer, all such files shall become the sole property of the foreign insurer or its estate, subject to the condition that the MGA shall have access to and the right to copy the files on a timely basis. (8) An MGA shall render accounts, including claims bordereaux, to the foreign insurer stating details of all transactions and remit all funds due under the contract to the foreign insurer on not less than a monthly basis. (9) All financial statements and relevant documents referred to in these regulations shall be retained for such period as specified under the International Financial Services Centres Authority (Maintenance of Insurance Records and Submission of Requisite Information for Investigation and Inspection) Regulations, 2022; Provided that the documents pertaining to the cases where claims are reported and the decision is pending in a Court, the documents shall be maintained till the disposal of the cases; Provided further that unless otherwise required in any other laws for the time being in force, all such financial statements and relevant documents may be maintained in non-editable electronic retrieval form. (10) All financial statements shall include a note providing the foreign insurer-wise (including foreign insurer's group companies) details of all the incomes received by it and also the details of payments received by it from its group companies, associates, and related parties. (11) An MGA shall make disclosures of all related party transactions in its audited financial statements. (12) An MGA shall have robust cyber security and cyber resilience framework in accordance with the requirements as may be specified by the Authority from time to time. CHAPTER V GOVERNANCE AND COMPLIANCE 24. Foundational Principles for an MGA- An MGA shall, at all times, act in accordance with the following foundational principles - (1) An MGA owes its primary fiduciary duty to the foreign insurer with whom it has executed a BAA and while exercising delegated authority the MGA shall observe high standards of integrity and act with the such skill and care as if the MGA's own capital were at risk. (2) An MGA shall ensure that the interests of policyholders are protected, particularly when exercising delegated authority for underwriting or claims. (3) An MGA may use the advertising material approved by the foreign insurer for solicitation of insurance business. (4) An MGA shall develop and implement a Board approved conflict management policy, which shall be reviewed annually. (5) An MGA shall disclose its status as an insurance intermediary of the foreign insurer(s) to the policyholders and shall prominently mention the name of the foreign insurer(s) in all policy documents. 25. Filing of returns - An MGA shall file the relevant returns in such form and manner as may be specified by the Competent Authority. 26. Disclosures to the Competent Authority - (1) An MGA shall take prior approval of the Competent Authority for the following – (a) Change of Principal Officer/ Branch Head; (b) Change of Director(s) if any; (c) Change of its name; or (d) Change of its corporate/registered office. Explanation. - For removal of doubts, it is clarified that an MGA shall inform Competent Authority in the event of resignation of any director. (2) An MGA, within seven (07) days, shall furnish to the Competent Authority the following information as and when there is a change in the information furnished previously to the Competent Authority: (a) List of MQPs; and (b) Claims under the Professional Indemnity Policy. (3) The Competent Authority may require the MGA to furnish such other data, documents or information, in such manner and at such interval, as it may specify. 27. Amalgamation and transfer of business (1) No scheme of amalgamation or merger or acquisition or transfer of business of the MGA shall be implemented without the prior approval of the Competent Authority. (2) The process for seeking approval, for such amalgamation or merger or acquisition or transfer of business of the MGA, shall be in such form and manner as specified by the Competent Authority. 28. Sale of insurance through digital modes (1) An MGA may enter into an agreement with foreign insurers for sale of insurance products online by linking to the web portals of the foreign insurers or by establishing insurance self-network platform. (2) An MGA may solicit insurance through digital modes subject to such conditions as may be specified by the Competent Authority. (3) The procedure for sale of insurance products where leads are generated through online or off-line and completed through tele-marketing mode by MGA shall be as specified by the Competent Authority. CHAPTER VI MISCELLANEOUS 29. Fee - (1) The Applicant while filing application seeking registration as an MGA shall pay non-refundable fee of USD 1,000 (USD One thousand only) as application fees, to the Authority. (2) Upon communication the Applicant shall pay non-refundable fee of USD 5,000 (USD Five thousand only) as registration fees, to the Authority. (3) An MGA who has been granted certificate of registration under these regulations shall pay higher of the annual fee as specified below, for each financial year to the Authority on or before 30th day of April of such financial year: (a) USD 12,500 (USD twelve thousand five hundred only); or (b) One-twentieth of one per cent. of total gross premium written by an MGA during the financial year immediately preceding the year in which the annual fee is required to be paid. (4) The fee amount shall be remitted into the bank account of the Authority through any of the recognised modes of electronic funds transfer. (5) In the event of a certificate of registration being lost or destroyed or mutilated, an MGA shall submit an application along with a fee of USD 500 (USD five hundred only) requesting for the issue of a duplicate certificate of registration, with a declaration giving full details about the certificate of registration. (6) The Competent Authority, after satisfying itself that the original certificate of registration has been lost, destroyed or mutilated, may issue a duplicate certificate of registration with an endorsement thereon that it is a duplicate. 30. Voluntary surrender- An MGA may surrender its certificate of registration only with the prior written approval of the Competent Authority and after providing a plan to run off its existing book of business, including submitting evidence of adequate capital to wind down operations in an orderly manner without disrupting policyholder services. 31. Power to issue subsidiary instructions – The Competent Authority may issue subsidiary instructions for the following purposes, namely: – (1) clarifying the ambiguity of the provisions of this regulation, if any; and (2) laying down any procedural requirement ancillary to this regulation. 32. Power to remove difficulties and relax strict enforcement of the regulations- (1) The Competent Authority, for reasons to be recorded in writing, may in the interest of development of insurance ecosystem in International Financial Services Centre, relax the strict enforcement of any provision of these regulations. (2) For seeking relaxation under sub-regulation (1), an application giving details and the grounds on which such relaxation is being sought, shall be filed with the Competent Authority along with such non- refundable fee as may be specified by the Authority. (3) The application made under sub-regulation (2), complete in all respects, shall be processed within sixty (60) days from the date of its receipt, or receipt of the responses to the clarifications sought by the Competent Authority, if any. (4) The Competent Authority shall dispose of the application received under sub-regulation (2), by recording the reasons in writing for acceptance or refusal of relaxations sought by the applicant. 33. Power to Inspect and Investigate - The Competent Authority shall have the power to inspect the financial statements, relevant documents and premises of the MGA at any time without prior notice, and may call for any information from the MGA or the Applicant, so far as it relates to its activities as MGA. 34. Action in case of default and manner of suspension or cancellation of Certificate of Registration- (1) The Competent Authority may take appropriate action as it deems fit, including suspension or cancellation of the registration of an MGA, after due notice and giving it a reasonable opportunity of being heard, if it, inter-alia (a) violates the provisions of the applicable laws; (b) fails to furnish any information relating to its activities as an MGA as required by the Competent Authority; (c) fails to comply with the directions issued by the Competent Authority; (d) furnishes wrong or false information, or conceals or fails to disclose material facts in the application submitted for obtaining registration or during the validity of certificate of registration; (e) does not submit periodical returns as required by the Competent Authority; (f) does not co-operate with any inspection or enquiry conducted by the Competent Authority; (g) fails to resolve the complaints of the policyholders or fails to give a satisfactory reply to the Competent Authority; (h) indulges in rebates or inducements in cash or kind to a client or any of the client's directors or other employees or any person acting as an introducer except as permitted under these regulations; (i) is found guilty of misconduct or its conduct is not in accordance with the Code of Conduct specified under these regulations; (j) fails to maintain the capital, Net Worth and deposit requirements in accordance with these regulations; (k) fails to pay the fees, penalties imposed or the reimbursement of expenses under these regulations; (l) violates the conditions of certificate of registration; (m) does not carry out its obligations as specified in these regulations; (n) undertakes multi-level marketing for soliciting and procuring direct insurance policies; (o) carries on the business with a Principal Officer who does not acquire practical training and/or pass the examination as specified in these regulations; (p) violates the conditions of BAA; (q) fails to commence business within one hundred eighty (180) days of registration or such extension as may be granted by the Competent Authority; (r) is found guilty of fraud, misrepresentation, or ethical misconduct; (s) any other violation of these regulations or subsidiary instructions issued thereunder; Provided that the suspension or cancellation of certificate of registration shall be in accordance with the manner specified under these regulations. (2) Upon inspection or investigation or otherwise, the Competent Authority is of the opinion that the operations of MGA are not being conducted in accordance with the applicable laws; or its activities are not in the interests of the insurance ecosystem in the International Financial Services Centres, the Competent Authority may take appropriate action against it. (3) Without prejudice to the above, the Competent Authority may take any other action as it deems fit, under the Act and Insurance Act, 1938 (4 of 1938). 35. Manner of holding enquiry for suspension or cancellation of Certificate of Registration- (1) The certificate of registration of an MGA shall not be suspended or cancelled unless an enquiry has been conducted in accordance with the procedure specified in this regulation. (2) For the purpose of holding an enquiry under this regulation, the Competent Authority may appoint an enquiry officer within fifteen (15) days of the initiation of the proceedings; (3) The enquiry officer shall issue a notice to the MGA electronically or at the registered office or the principal place of business of the MGA, calling for all data, documents or information as deemed necessary to conduct the enquiry; (4) An MGA may, within twenty-one (21) days from the date of receipt of such notice, furnish to the enquiry officer a reply to the notice together with copies of documentary or other evidence relied on by them or sought by the enquiry officer. (5) The enquiry officer shall give a reasonable opportunity of hearing to an MGA to enable it to make submissions in support of its reply made under sub-regulation (4) above. (6) An MGA may either appear in person to present their case. (7) If it is considered necessary, the enquiry officer may – (a) require the Competent Authority to present its case through one of its officers; (b) call for feedback/information from the foreign insurer or any other related entity during the course of enquiry; (c) call for additional data, documents or information from an MGA. (8) The enquiry officer shall make all necessary efforts to complete the proceeding at the earliest but in no case beyond sixty (60) days of the commencement of the enquiry; Provided that in case the enquiry cannot be completed within the specified time limit of sixty (60) days as mentioned above; the enquiry officer may seek additional time from the Competent Authority stating the reason thereof. (9) The enquiry officer shall, after taking into account all relevant facts and submissions made by the MGA, submit a report to the Competent Authority within thirty (30) days of the completion of the enquiry proceedings. 36. Action to be taken after the receipt of the enquiry report - (1) On receipt of the report from the enquiry officer, the Competent Authority shall consider the report and issue a show-cause notice (SCN) to the MGA if the contents of the report warrant a suspension or cancellation of the registration granted to them. (2) The MGA shall, within twenty-one (21) days of the date of receipt of the SCN, send a reply to the Competent Authority. (3) The Competent Authority, after considering the reply to SCN shall pass such an order as it deems fit; Provided that where the MGA on serving of the notice under this regulation fails to furnish any reply within the stated period, the Competent Authority may after the expiry of such time proceed to decide the case on merit and pass such an order as it deems fit. (4) The Competent Authority shall send a final order made under sub-regulation (3) to the MGA. 37. Suspension or cancellation of Certificate of Registration and effects thereon- (1) The Competent Authority shall issue the final order for suspension or cancellation of the certificate of registration of the MGA, and it shall cease to act as an MGA from the date of the final order; Provided that, an MGA whose certificate of registration has been suspended or cancelled shall continue to service the contracts already concluded through it for a period of six months, within which it shall make suitable arrangements for having the existing contracts attended to by another MGA registered under these regulations. (2) The Competent Authority on suspension or cancellation of certificate of registration may pass such order as it thinks fit for the disposal of the deposit of the MGA made under regulation 15 of these regulations. (3) An MGA who agrees to take over the obligations of policy service from the MGA whose certificate of registration is suspended or cancelled, shall submit its request to the foreign insurer for serving the policies / contracts throughout the policy term. (4) An MGA, upon obtaining the approval from the foreign insurer in terms of sub-regulation (3), can collect remuneration on subsisting contracts with prospective effect from the date of service of the contracts. (5) The foreign insurer shall pay remuneration / policy service on subsisting contracts with prospective effect from the date of allotment of service of the contracts to the new MGA with whom the foreign insurer had executed a new BAA. 38. Publication of order of suspension or cancellation – (1) The order of suspension or cancellation of the certificate of registration shall be displayed on the website of the Authority and communicated to the MGA. (2) Upon the suspension or cancellation of the certificate of registration of an MGA, such MGA shall cease to carry on any business as an MGA with effect from the date of such suspension or cancellation. 39. Repeal and Savings (1) On and from the commencement of these regulations, all the provisions related to Managing General Agent (MGA) wherever they occur in the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021, shall stand omitted. (2) On and from the commencement of these regulations, the provisions applicable to an insurance intermediary under the International Financial Services Centres Authority (Insurance Intermediary) Regulations, 2021, shall not be applicable to Managing General Agent (MGA) registered under these regulations. (3) Notwithstanding such omission – (a) anything done or any action taken or purported to have been done or taken including registration or approval granted, suspended or cancelled, fees collected, any adjudication, enquiry or investigation commenced or show-cause notice issued, under the omitted provisions shall be deemed to have been done or taken or commenced under the corresponding provisions of these regulations; (b) any application made to the Competent Authority under the repealed regulations, prior to such repeal, and pending before it shall be deemed to have been made under the corresponding provisions of these regulations; (c) the previous operation of the omitted provisions or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the omitted provisions, any penalty incurred in respect of any violation committed against the omitted provisions, or any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, shall remain unaffected as if the omitted provisions have never been omitted. (4) After the omission of provisions related to Managing General Agent (MGA), any reference thereto in any other regulations made, guidelines or circulars issued thereunder by the Authority, any act of the Government of India or laws enacted by other statutory authorities shall be deemed to have the reference to the corresponding provisions of these regulations. (5) Save as otherwise contained in sub-regulations (1) and (2), the circulars or guidelines issued by Competent Authority under the omitted provisions, shall be deemed to have been issued under these regulations unless and until they are specifically superseded or modified by the Competent Authority. Schedule-I 'Functions and activities of MGA' 1. Underwriting and Risk Selection – (1) Risk Assessment and Acceptance within BAA limits: Evaluation of risks through sophisticated modelling and selection processes to ensure alignment with the foreign insurer's Underwriting Policy. (2) Binding Authority: Exercising delegated authority to bind risks, issue binders, and execute insurance contracts within the limits specified in the BAA. (3) Pricing Mechanism: Development and application of technical rating models. The MGA shall ensure that all quotes are compliant with the foreign insurer's rating manuals and actuarial benchmarks, related specialized data, accounting for risk-loading, administrative costs, and statutory levies and shall not deviate from the foreign insurer's overarching risk appetite. 2. Product Development and Manufacturing - (1) Product Design: Conceptualizing and designing insurance products, including the drafting of policy wordings, terms, conditions, and exclusions. (2) Regulatory Filing: Ensuring compliance with IFSCA (Insurance Products & Pricing) Regulations, 2022. 3. Policy Lifecycle and Operational Management - (1) Policy Issuance: Execution and delivery of policy documents, schedules, and endorsements. (2) Lifecycle Management: Handling the end-to-end administration of the policy, including – (a) Solicitation: Marketing and distribution of products via direct channels. (b) Servicing: Processing mid-term adjustments (MTAs), renewals, and cancellations for cause or non- payment. (3) Data Integration: Maintenance of real-time digital records and integration with the foreign insurer's core systems to ensure seamless reporting for solvency and regulatory oversight. The data of policyholders should be stored within India including IFSCs, to ensure compliance with the India's data protection laws. 4. Fiduciary and Accounting Functions - (1) Premium Collection and claims payment: An MGA shall act as a fiduciary in the collection of premiums and the maintenance of a Fiduciary Account. This account shall be used for all payments on behalf of the foreign insurer. The MGA may retain no more than three (03) months estimated claims payments and allocated loss adjustment expenses. (2) Financial Reporting: Periodic reconciliation of accounts and remittance of net premiums (gross premium less commission and authorized expenses) to the foreign insurer as per the BAA. 5. Claims Management and Loss Mitigation: Where specifically delegated under the BAA, the MGA shall perform the following claims functions: (1) Initial Intake and Triage: Receiving notices of loss, verifying policy coverage at the time of loss, and registering the claim file. (2) Negotiation and Adjusting: Investigating claims and negotiating settlements for complex or high-value losses within the technical parameters set by the foreign insurer. (3) Settlement Authority: Finalizing and issuing claim payments to policyholders or third-party claimants from the Fiduciary Account, provided such payments fall within the MGA's delegated financial authority subject to a monetary limit per claim and an aggregate limit. MGA may send specific claim files to the foreign insurer if they exceed set limits or involve coverage disputes. Schedule-II 'Code of conduct of MGA' 1. Integrity and Professionalism – (1) High Standards: An MGA shall act with high standards of integrity, dignity, and fairness in all its dealings. (2) Fiduciary Duty: An MGA shall owe its primary fiduciary duty to the foreign insurer. In fulfilling this duty, the MGA shall simultaneously ensure a secondary duty of fairness and transparency to the policyholder. (3) Due Care and Diligence: An MGA shall act with appropriate skill, care, and diligence in the exercise of its delegated authority, particularly in underwriting and claims management. 2. Conflict of Interest and Governance (1) Board-Approved Policy: An MGA shall implement a comprehensive conflict management policy approved by its Board of Directors. This policy shall be reviewed annually. (2) Segregation of Activities: If an MGA is part of a group involving brokers or loss assessors, it shall maintain a strict 'arms-length' distance and clear operational segregation to prevent cross-contamination of interests. (3) Group Bindings: An MGA shall not bind risks for its own group entities unless specifically authorized in writing by the foreign insurer and disclosed to the Competent Authority. 3. Disclosures and Transparency (1) Material Information: An MGA shall disclose to the policyholder its status as an agent of the foreign insurer and any specific interest it holds in the risk being insured. (2) Truthful Advertising: All promotional materials and communications shall be – (a) Fair, clear, and unambiguous. (b) Free from misleading statements that exploit a client's lack of insurance experience. 4. Market Conduct and Anti-Mis-selling - (1) Product Suitability: An MGA shall ensure that any insurance product bound under its authority is suitable for the client's risk profile and specific needs. The MGA has duty to screen for 'suitability' and monitor their sales practices to prevent mis selling. (2) Clear Communication: All features, exclusions, and limitations of the insurance policy shall be communicated clearly to the client prior to binding. 5. Professional Standards and Accountability - (1) Principal Officer (PO) Responsibilities: The PO or Branch Head shall be responsible for the day-to-day conduct of the MGA. The PO shall satisfy 'Fit and Proper' criteria, demonstrating competence in insurance, as per IFSCA guidelines, residency requirement. (2) Staff Conduct: An MGA is strictly liable for the professional conduct of its employees it appoints. 6. Records and Audit Compliance - (1) Record Retention: An MGA shall maintain a Board-approved record retention policy, ensuring all underwriting, claims, and financial data are retrievable and secure for the duration as specified by the Competent Authority. (2) Right to Audit: An MGA shall facilitate periodic audits by the foreign insurer regarding underwriting files and claims handling to ensure strict adherence to the BAA. Schedule-III PROFESSIONAL INDEMNITY (PI) REQUIREMENTS 1. Mandatory Maintenance of PI Insurance – (1) Commencement of Cover: An MGA shall, at all times, maintain a Professional Indemnity (PI) insurance policy from its date of registration. (2) Scope of Coverage: The policy shall provide cover for legal liabilities arising from any act, error, or omission committed by the MGA, its employees, or its appointed representatives in the conduct of authorized business activities. The policy shall provide for cyber liability Insurance. 2. Tiered Minimum Limits of Indemnity – (1) An MGA shall maintain limits of indemnity both at individual claim level and aggregate that are proportionate to its scale of operations and potential risk exposure. (2) The limits shall be determined, having regard to the calculated percentage of annual income. (3) Currency Alignment: If a policy is denominated in a currency other than USD, the MGA shall ensure that the limits are equivalent to the mandated USD amounts at the time of each renewal. (4) Review Mechanism: These limits shall be reviewed by the MGA Board annually and adjusted for shifts in the risk landscape or inflation. 3. Management of Policy Excess (Deductibles) – (1) To prevent insurance intermediaries from assuming unmanageable financial risk, the maximum permissible 'excess' (the amount the MGA pays out-of-pocket per claim) is capped as follows: (a) MGAs not holding client money: The excess shall not exceed the higher of $2,500 or 1.5% of annual income. (b) MGAs holding client money (Fiduciary Accounts): The excess shall not exceed the higher of $5,000 or 3% of annual income. (2) Compensatory Capital: If an MGA opts for a higher excess to reduce premium costs, it shall maintain additional capital resources as a buffer, equivalent to the difference between the actual excess and the regulatory cap. 4. Mandatory Policy Features: The PI insurance contract shall explicitly include the following - (1) Legal Defence Costs: Coverage for costs and expenses incurred in defending professional negligence claims, in addition to the limit of indemnity. (2) Retroactive Cover: The policy shall provide 'continuous cover' for all work carried out from the initial date of the MGA's registration in the IFSC. (3) Ombudsman and Arbitration Awards: Indemnity against awards made by the IFSCA's grievance redressal bodies or recognized arbitration centers. (4) No Unreasonable Exclusions: The policy shall not contain conditions or exclusions that unreasonably limit the core cover required for the MGA's specific business lines (e.g., claims handling, underwriting). Schedule-IV MANDATORY PROVISIONS OF BINDING AUTHORITY AGREEMENT (BAA) 1. Contract primacy: No MGA shall operate without a written contract that includes specific required clauses like termination for cause, suspension of authority, monthly accounting/remittance, fiduciary capacity, three- month rule, the right of foreign insurer to cancel or non-renew any policy of insurance subject to the applicable laws and regulations and non-assignment. 2. Scope of Authority: Explicitly state classes of direct insurance business, territorial limits, and maximum limits of liability per risk. 3. Fit and Proper Status: All individuals who manage or control an MGA including directors, senior managers, and shareholders owning significant percentage of the company shall satisfy 'fit and proper' criteria. 4. Ownership Link Disclosures: To manage potential conflicts of interest, a significant per cent or more ownership link between a foreign insurer and an MGA may be disclosed to any prospective policyholder. 5. Underwriting Boundaries: Setting annual GWP cap, surplus triggers, the basis of the rates to be charged; the types of risks which may be written; maximum limits of liability; applicable exclusions; territorial limitations; policy cancellation provisions; and the maximum policy period and reinsurance prohibitions, as may be applicable. 6. Monetary limits of Claims Authority Delineation, as agreed – (1) Processing Only: MGA verifies loss but cannot authorize payment. (2) Settlement Authority: MGA can authorize payment up to an agreed amount at claim level and aggregate. 7. Fiduciary Stewardship: Mandatory trust account segregation and remittance 'without delay' rules. 8. Loss Fund: Limit of the loss fund to be maintained with an MGA shall not be more than three (03) months of estimated claims. 9. Bordereau Reporting: Mandatory monthly submission of premium and claims bordereaux to the foreign insurer in a template mutually agreed. 10. The 5% Surplus Rule: An MGA shall notify the foreign insurer if its quarterly GWP production exceeds 5% of the foreign insurer's policyholder surplus. 11. Data Portability: Mandate for the seamless transfer of policyholder records to the foreign insurer upon contract termination. 12. Verification and Oversight: Mandating two-year audited financials and annual on-site inspections. 13. On-Site Review: Foreign insurer to conduct on-site reviews of underwriting and claims at least half yearly. PRAVEEN TRIVEDI, Executive [ADVT.-III/4/Exty./162/2026-27]