What happened
The Insurance Regulatory and Development Authority of India (IRDAI) has pushed the deadline for public feedback on its insurance distribution reforms to 31 October 2026. The earlier date was 25 October, according to reports in Mint and CNBC-TV18.
In its release, the regulator said the consultation had drawn an encouraging response, with over 650 comments received so far. It said the extra time was meant to allow wider participation by stakeholders and members of the public.
The Insurance Brokers Association of India (IBAI) had earlier asked for an extension until the end of December, saying it needed more time to examine the proposals, Mint reported.
What it means for you
If you are a policyholder, insurer, agent or broker, you now have until 31 October to send comments on the paper, titled ‘Recalibrating Economics of Insurance Distribution’. IRDAI invited views from policyholders, insurers, intermediaries and others.
Feedback can be given in three ways, according to Mint:
- Through the web portal at iib.gov.in/d.
- By downloading the Excel template from that portal, filling it in and uploading it.
- By emailing the completed template to drfeedback@iib.gov.in with the subject line “Reforms for Recalibrating Economics of Insurance Distribution”.
The proposals are still a draft. Nothing in the reports says when final rules might follow.
Background
IRDAI released the two-part paper on 23 September 2026. Reports describe several proposals: stricter limits on expenses of management (the costs an insurer incurs to run its business), a return to commission caps set product by product, and a prohibition on banks and non-banking financial companies making insurance a compulsory add-on to their loans. Changes to motor insurance distribution are also proposed.
For individual life insurance, the draft sets first-year commission limits for distribution entities at 5% to 20%, depending on the premium payment term. Agent limits range from 6.25% to 25%, Mint reported.
CNBC-TV18 reported that the paper also covers dark patterns, meaning practices that make consumers share personal details before seeing basic product features and pricing, and a framework for Mutual Insurance Intermediaries.
IRDAI Chairman Ajay Seth told CNBC-TV18 on 30 September that the paper was “not merely about bringing distribution cost down” but about a more efficient insurance sector. He said the framework allows extra commission in underserved smaller cities and towns.
Mint reported that IBAI has warned the overhaul could threaten intermediaries’ viability, jobs and customer servicing.
