INCOME TAX29 Sept 2026
Balancing regulatory oversight and operational autonomy in insurance sector | Mint
The insurance regulator IRDAI has proposed cutting expense limits: general insurers from 30% to 20% over five years, life insurers to 15% in two years and 12.5% in five. It also wants product and channel commission caps. This affects insurers, distributors and agents. Lower ceilings could trim spending on new markets and agency networks, so review your cost and commission plans.
Key Statutory Highlights
- IRDAI's consultation paper proposes reducing the expense of management limit for general insurers from 30% to 20% over five years.
- For life insurers, the proposed company-level expense of management limit would move to 15% within two years and 12.5% within five years.
- IRDAI earlier barred Edelweiss Life, Pramerica Life, ACKO General and Niva Bupa from opening new branches for six months after expense of management limit breaches.
Actionable Advice for Taxpayers / Founders:Check your distribution, commission and operating costs against these proposed limits, and wait for the final IRDAI rules before changing existing contracts. A CA can help you assess the impact on your business.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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