GENERAL23 Sept 2026
Irdai proposes tighter expense limits, new commission caps for insurers
Irdai wants to make insurance cheaper for you. The regulator plans to cut how much insurers can spend on expenses, and it wants new caps on commissions. It also proposes banning forced bundling of insurance with loans, which often leads to mis-selling. For general insurers, the expense benchmark may shift to domestic gross direct premium income, from gross written premium.
Key Statutory Highlights
- Irdai has proposed phased cuts to the expense limits that insurers are allowed.
- The regulator has also proposed new commission caps for insurers.
- A ban is proposed on compulsory bundling of insurance with loans, to curb mis-selling.
Actionable Advice for Taxpayers / Founders:If a lender or agent insists you buy insurance along with a loan, ask clearly whether it is compulsory and compare a standalone policy on your own. Wait for Irdai's final rules before you change any existing cover.
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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