IRDAI to Regulate Insurance Distributors' Commissions

The insurance regulator in India, IRDAI, is planning to make new rules to lower the high commissions paid to insurance agents and distributors.

These high commissions make insurance like health, motor, and life insurance more expensive for people who buy them.

The government wants to give IRDAI more power to control these commissions.

Recently, the Parliament passed a law that allows IRDAI to set limits on what insurers can pay to their agents.

Experts say that high commissions, not just medical inflation, are a big reason why insurance premiums keep going up.

For example, insurers pay agents a lot of money, sometimes up to 45% of the first-year premium.

The goal is to make sure that these commissions are fair and do not make insurance too costly for everyone.

Additionally, there has been an increase in complaints about mis-selling of insurance policies, and the penetration of life insurance in India has slightly declined.