Agent Bias Costs You 8–12%: Will IRDAI Fix It?

IRDAI is reviewing how insurance is sold in India, including agent commissions and distribution rules. Changes are delayed but could eventually let you buy cheaper, unbiased policies directly — saving thousands on premiums.

Here's what happened: IRDAI is considering extending the feedback deadline and phased rollout for insurance distribution reforms beyond the current financial year.. The reforms aim to overhaul how insurance is sold — targeting agent commission structures and enabling more direct, unbiased distribution channels.. Until rules are finalised, agent-sold policies continue to carry embedded commissions that can add 8–12% to effective premium costs versus direct-channel purchases..

What you should do: Compare quotes: visit your insurer's website directly and compare the premium against your agent's quote for the same cover — the difference is often visible today.. Audit your existing policy on IRDAI's Bima Bharosa portal (bimabharosa.irdai.gov.in) to check if your cover and premium are competitive for your age and health profile.. Avoid locking into long-tenure agent-sold policies right now — wait for distribution reform clarity before committing to multi-year or bundled insurance products..

Direct-plan insurance policies (bought online without an agent) already exist for term and health covers — compare them on IRDAI-regulated aggregators before your next renewal to capture savings now, no reform needed.

If this affects your borrowing choices, compare current personal loan options from 100+ lenders on GoCredit.