INCOME TAX30 Sept 2026
IRDAI’s proposed 2% commission cap could hurt rural insurance access, warns Coverfox founder and MD Sanjib Jha | Mint
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a 2% cap on commissions for loan-linked insurance. Coverfox founder Sanjib Jha warns this could make enrolling and servicing rural and underserved borrowers unaffordable. The consultation paper, released on 23 September 2026, also looks at forced bundling of insurance with loans. Jha suggests technology can cut distribution costs. Comments are open until 25 October 2026.
Key Statutory Highlights
- IRDAI has proposed a 2% cap on commission for loan-linked insurance as part of its plan to bring down distribution costs.
- Coverfox founder and MD Sanjib Jha said the cap could make it economically unviable to enrol and service borrowers in rural and underserved markets.
- IRDAI invited comments from the public on its two-part consultation paper until 25 October 2026, so the proposals may change before final rules are notified.
Actionable Advice for Taxpayers / Founders:If you sell or buy insurance bundled with loans, read IRDAI's consultation paper and send your views before 25 October 2026, since the final rules may change.
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
Share: