Insurance Commission Caps: Will Your Premium Fall?

IRDAI is proposing caps on how much commission banks and agents earn when they sell you insurance. Insurers and banks are pushing back. If the rules pass, your premiums could change — and so could the advice you get.

Here's what happened: IRDAI is reviewing insurance distribution rules, including proposed caps on commissions paid to agents and bancassurance partners like banks.. Insurers and banks have raised concerns that strict commission caps could reduce their incentive to sell insurance, especially in smaller markets.. The regulator may extend its public feedback deadline, delaying when any new norms take effect — so no immediate change is confirmed yet..

What you should do: Ask your bank or agent for a written commission disclosure before signing any insurance policy — IRDAI regulations already entitle you to this information.. Compare term and health insurance directly on aggregator platforms to see if you are getting market-competitive pricing versus bank-bundled products.. Avoid bundling insurance with loans until these distribution norms are finalised — lenders cannot legally make insurance mandatory for loan approval..

Under IRDAI's Insurance Repository rules, you can hold all your policies digitally in one e-Insurance Account — making it easy to spot duplicate or unnecessary covers sold to you.

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