IRDAI plans to curb 40% upfront agent commissions in India
India's insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), wants to fix a big problem: agents pushing policies just for hefty up-front commissions, sometimes up to 40% of your premium.
The proposed plan would spread commissions out over the life of your policy instead of paying everything at once.
This should help make sure you're getting what actually suits you, not just what earns someone a quick buck.
IRDAI plans stricter distributor rules
A draft of these changes is expected in the next month or so. IRDAI also plans stricter rules and more transparency for distributors.
With India's insurance penetration still low compared to global standards, even though annual premiums top $125 billion, the government hopes these moves (plus recent tax cuts and FDI reforms) will make buying insurance fairer and boost trust in the system.