INCOME TAX24 Sept 2026
Want insurance cover on your loan? IRDAI proposes new rules for lenders bundling the two; details here | Mint
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed new rules for loans bundled with insurance cover. Lenders may soon have to show insurance costs separately, so borrowers see the real price instead of a premium folded into the loan. Bundling health cover with home or motor loans should be discouraged as cost-inefficient. Compare offers and check the extra cost.
Key Statutory Highlights
- IRDAI has proposed safeguards so borrowers get clearer choices when insurance cover is bundled with a loan.
- A lender could offer a lower interest rate if the borrower gives extra security, such as term life insurance or property insurance equal to the loan amount.
- IRDAI says packaging health benefit cover with home or motor loans against critical illness should be discouraged, as that is likely to be cost-inefficient for borrowers.
Actionable Advice for Taxpayers / Founders:Before signing any loan, ask the lender to show the insurance premium separately from the loan cost, and compare loan offers, interest rates, and terms to judge whether the cover fits your budget.
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: