INCOME TAX24 Sept 2026
Did your agent mis-sell insurance? IRDAI proposes clawing back their commission under new reforms | Mint
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed new rules that would let insurers take back an agent's commission if a policy is found to be mis-sold. Salespersons would be tagged to the policies they sell, and mis-selling records could appear publicly. If a product doesn't suit you, your signature alone may not protect the seller. Always ask for suitability details in writing.
Key Statutory Highlights
- IRDAI has proposed that insurers should claw back commission when an instance of mis-selling is established.
- The regulator wants salespersons, agents and PoSPs tagged to the policies they sell, so the seller's identity is linked to the sale.
- Information about mis-selling instances could be made available to the public through the Public Insurance Registry.
Actionable Advice for Taxpayers / Founders:Before buying any insurance policy, ask the agent to put your needs and suitability in writing, and read the policy terms yourself. This is only a proposal right now, so check the latest position before relying on it.
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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