Circular No. IRDAI/F&I/GDL/MISC/27/02/2026, Dated: 12.02.2026
The Insurance Regulatory and Development Authority of India (IRDAI) has issued revised guidelines governing the establishment and closure of liaison offices in India by insurance companies registered outside India.
The revised guidelines supersede earlier instructions and provide a comprehensive framework for regulatory oversight and compliance.
1. Eligibility and Application Requirements
The guidelines prescribe:
- Eligibility criteria for foreign insurance companies seeking to establish liaison offices in India
- Detailed application and approval process
- Documentation and disclosures required for obtaining regulatory approval
Approval from IRDAI is mandatory prior to commencing liaison office operations.
2. Permitted Activities of Liaison Offices
Liaison offices are permitted to undertake only limited and non-commercial activities, including:
- Representational and coordination functions
- Market research and information exchange
- Liaison with group entities and regulators
Such offices are not permitted to:
- Undertake insurance business
- Earn income in India
- Enter into underwriting or risk-bearing activities
3. Operational and Compliance Conditions
The revised framework specifies:
- Operational conditions governing the functioning of liaison offices
- Compliance requirements with applicable Indian laws and regulations
- Restrictions on activities beyond the approved scope
Liaison offices must operate strictly within the permitted framework.
4. Reporting and Record-Keeping Requirements
Foreign insurers operating liaison offices must:
- Maintain proper books of accounts and records in India
- Submit periodic reports to IRDAI
- Provide an annual activity certificate confirming compliance with permitted activities and conditions
These requirements strengthen regulatory monitoring and transparency.
5. Closure of Liaison Offices
The guidelines also prescribe procedures for:
- Voluntary closure of liaison offices
- Submission of closure application and documentation
- Settlement of all liabilities prior to closure
- Regulatory confirmation from IRDAI
6. Regulatory Objective
The revised guidelines aim to:
- Ensure clear regulatory oversight over foreign insurers’ presence in India
- Standardise approval and compliance processes
- Prevent unauthorised insurance activities
- Enhance transparency and accountability
7. Key Takeaway
Foreign insurance companies intending to establish liaison offices in India must comply with IRDAI’s revised comprehensive framework covering eligibility, permitted activities, reporting, compliance, and closure procedures, reinforcing regulatory supervision of cross-border insurance presence.
Click Here To Read The Full Circular
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