In the Iranian legal system, the insurance market regulatory body—specifically the Central Insurance of the Islamic Republic of Iran—plays a fundamental role in regulation, supervision, and the protection of policyholders' rights. This research examines the foundations, scope, and implications of the civil liability of the insurance regulatory body in cases of negligence or failure to act (omission) regarding its supervisory and protective duties toward policyholders. The study employs a descriptive-analytical methodology, drawing upon library research, insurance laws and regulations, and relevant scholarly literature. The central question is whether, and under what conditions, the insurance market regulatory body incurs civil liability toward policyholders if it fails to fulfill its statutory duties. The findings indicate that, given the protective objective of the *Law on the Establishment of the Central Insurance*, the supervisory duties stipulated in Article 5 of that Law, and the provisions of the *Regulation on the Protection of Policyholders' Rights*, it is possible to establish the civil liability of the regulatory body in instances of fault, failure to exercise effective supervision, or breach of statutory obligations. However, the realization of such liability is contingent upon establishing fault, the occurrence of damage, a causal link, and the attributability of the loss to the regulatory body's negligence or omission.