IRDAI proposes commission caps for banks and brokers selling insurance
India's insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), is looking to set new limits on how much banks and brokers can earn from selling insurance.
The idea is to cut down on policy costs and make things fairer for customers.
If you have ever felt like insurance was being pushed a little too hard, especially when getting a loan, this could change that.
Feedback on these rules is open until October 25.
IRDAI bars banks from forced bundling
The plan brings back commission caps based on how complex an insurance product is.
For life insurance, payouts to sellers would be lower and spread out over the policy's life.
Selling third-party motor insurance for new vehicles? No commissions at all.
Banks also wouldn't be allowed to force you into buying insurance just to get a loan, which should mean more freedom and transparency for everyone shopping around.