The Government has approved a proposal to abolish the existing upper age limit for the appointment of the Chairman and members of the Insurance Development and Regulatory Authority (IDRA), the statutory body responsible for regulating the country’s insurance sector.
The decision was taken at a meeting of the Cabinet held on Thursday (23 April) at the Secretariat, where the draft “Insurance Development and Regulatory Authority (Amendment) Act, 2026” received final approval. The proposed amendment will come into force after vetting by the Legislative and Parliamentary Affairs Division. The Financial Institutions Division placed the proposal before the Cabinet.
At present, under Section 7(3)(g) of the “Insurance Development and Regulatory Authority Act, 2010”, there is a maximum age limit of 67 years for individuals to be appointed as Chairman or members of IDRA. The approved amendment removes this restriction entirely.
Officials stated that the existing age ceiling has, in practice, limited the government’s ability to appoint highly experienced and technically skilled professionals in senior regulatory positions within the insurance sector. The removal of the cap is intended to broaden the pool of eligible candidates and facilitate appointments based primarily on expertise and suitability rather than age.
The government has also indicated that the reform is aimed at strengthening institutional capacity within the insurance regulator, with a view to improving governance, oversight, and sectoral modernisation. By eliminating the age barrier, authorities expect greater flexibility in selecting individuals with long-standing professional experience in insurance, finance, and related regulatory fields.
The proposal further notes that similar approaches exist in several countries in the region. In particular, it cites examples such as Sri Lanka and Nepal, where no fixed upper age limit is imposed for appointments to senior positions in insurance regulatory authorities. The amendment is therefore presented as an effort to align domestic regulatory practices with selected international standards.
Key Changes Introduced by the Amendment
| Area | Current Provision (2010 Act) | Proposed Provision (2026 Amendment) |
|---|---|---|
| Maximum age for Chairman and Members of IDRA | 67 years | No upper age limit |
| Basis of appointment | Subject to age restriction and qualifications | Based on qualifications and experience without age restriction |
| Policy objective | Existing statutory framework | Expansion of expert talent pool and institutional strengthening |
| International reference | Not specifically aligned | Alignment with selected regional practices |
Once the vetting process by the Legislative and Parliamentary Affairs Division is completed, the amendment will be finalised and implemented through the standard legislative procedure.