INCOME TAX24 Sept 2026
IRDAI proposes new motor insurance rules: What could change for new car buyers | Mint
IRDAI, the insurance regulator, has proposed new motor insurance rules that could change how you buy cover with a new vehicle. Buyers may get a clearer option to buy through digital platforms like Bima Sugam, dealers face tighter rules, and commissions on mandatory third-party cover may fall. The regulator aims to cut rising commissions. So ask your dealer about that digital option before you sign.
Key Statutory Highlights
- IRDAI's data shows motor insurance premiums grew about 34% between FY23 and FY25, while commissions rose about 259%.
- The average motor insurance commission rate was around 24% in FY25, with the range varying from 13% to 50%.
- IRDAI wants motor insurance for both new and old vehicles to be available on MII platforms such as Bima Sugam.
Actionable Advice for Taxpayers / Founders:Before buying a new vehicle, ask your dealer to show the option to buy motor insurance through the Bima Sugam platform, and compare that quote with the dealer's offer before you decide.
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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