IRDAI proposes commissions and management costs caps to curb mis-selling
India's insurance regulator, IRDAI, is proposing new rules to stop mis-selling and make insurance more transparent.
The plan? Put strict caps on commissions and management costs so insurers can't overcharge, and the savings go straight back to you through lower premiums and better returns.
These changes are open for public feedback until October 25, 2026.
Proposed commissions: life 20% health 15%
If approved, life insurance commissions could be capped at 20% in the first year for policies with premium-paying terms of 10 years or more, and health insurance at 15% in the first year and 5% on renewals, which means less money for brokers, banks, and digital platforms that rely on big commissions.
Even motor insurance might see a shake-up as distribution methods shift.
The goal: more value for policyholders and fewer hidden costs in your next policy.