Agent Commissions Hidden: Is Your Premium Too High?

IRDAI wants to reform how much insurance agents and banks earn when they sell you a policy. If reforms go through, your premiums could drop. Here is what is happening and what you should watch.

Here's what happened: IRDAI has proposed reforms to insurance distributor commissions, aiming to cut consumer costs and improve transparency across agents, brokers, and bancassurance channels.. RBI Governor Sanjay Malhotra publicly stated that the RBI has not yet finalised its position on these proposals, signalling active inter-regulator deliberation.. Banks are major insurance distributors in India; any commission cap or restructuring could change how bundled insurance products are priced and sold with loans..

What you should do: Compare premiums directly on insurer websites — direct-buy policies carry no agent commission and are often 10–15% cheaper than agent-sold equivalents.. Check if any insurance product was bundled with your home loan or personal loan and verify you were not overcharged relative to standalone policy rates.. Track IRDAI's official circulars over the next 90 days — if commission reforms are notified, your renewal premium at the next cycle could be lower..

Buying a term or health policy on the insurer's own website routes you through the 'direct' channel — no intermediary commission is loaded, so the base premium is structurally lower than what an agent or bank quotes you.