IRDAI to tag sellers on insurance policies under 2025 Act
The Insurance Regulatory and Development Authority of India (IRDAI) is planning a new rule where every insurance policy will be linked to the individual seller, whether that is an agent, broker, or bank employee.
The goal? Make it easy to trace who sold what, especially if there is a complaint about mis-selling.
This is all part of bigger reforms under the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025.
IRDAI targets mis-selling, seeks ₹1cr-₹10cr penalties
Tagging sellers aims to stop common issues like policies being mis-sold as fixed deposits or "guaranteed" returns.
If something goes wrong, insurers would be able to pinpoint exactly who was responsible and check if they gave good advice.
IRDAI also wants stricter rules, like moving to a perpetual registration regime for intermediaries and raising penalties for violations from ₹1 crore to ₹10 crore, to boost trust and transparency for everyone buying insurance.