GENERAL24 Sept 2026
IRDAI commission proposals: Why does Nithin Kamath see regulatory risk as key? | Stock Market News
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed new insurance commission and distribution expense rules. It wants different commission limits by product and distributor, and lower expense limits for life and general insurers within two to five years. Loan-bundled cover payouts could drop sharply, and compulsory bundling with loans may be banned. Insurance shares fell. Check how this affects your commission income.
Key Statutory Highlights
- IRDAI's consultation paper proposes different commission limits based on insurance type, product and distributor, with tied agents allowed higher commissions than other distribution entities.
- It proposes phased cuts in expense-of-management limits: for life insurers to 15% of gross direct premium income within two years and 12.5% within five years, and for general insurers to 25% and 20%.
- First-year commissions on loan-bundled life cover are proposed at 2-2.5%, compared with effective payouts of about 45% now, and compulsory bundling of insurance with loans may be banned.
Actionable Advice for Taxpayers / Founders:If a large part of your income comes from insurance commissions or loan-bundled cover, work out how these proposed caps could change your numbers and plan for a lower payout. Remember these are only proposals for now, so wait for the final IRDAI rules before changing your business model.
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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