IRDAI's New Rules: Is Your Insurance Cheaper Now?

IRDAI has released proposals to cap agent commissions, force cost transparency, and crack down on mis-selling. If passed, these rules could mean cheaper, cleaner insurance deals for ordinary buyers.

Here's what happened: IRDAI has released a consultation paper proposing caps on agent and distributor commissions across all insurance sales channels in India.. The proposals also require insurers to clearly disclose cost structures — including commissions and expense loads — to buyers before policy purchase.. Stricter anti-mis-selling guidelines are proposed, aimed at ensuring customers are sold products that match their actual financial need and risk profile..

What you should do: Check your existing policy's 'benefit illustration' document — it shows how much goes to charges vs actual coverage; compare this with a pure term plan.. Avoid buying insurance through your bank relationship manager until final IRDAI rules are out — bancassurance is one of the highest-commission channels under scrutiny.. File any mis-selling complaint on the IRDAI Bima Bharosa portal (bimabharosa.irdai.gov.in) if you were sold a policy without full cost disclosure..

On any ULIP or endowment plan, ask for the 'Projected Benefit Illustration' mandated by IRDAI — if Year-1 surrender value is less than 60% of premium paid, you are absorbing heavy commission costs.

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