IRDAI’s proposed commission reforms deserve support, argue Tarun Ramadorai and Vimal Balasubramaniam, because insurance incentives can shape what gets sold and how well it stays in force. But commission limits alone cannot tell buyers whether a policy delivers value: they also need comparable, product-level claims information. The measures discussed in the authors’ 7 October 2026 Mint opinion article are proposals, not confirmed enacted rules.
What the proposed IRDAI reforms would change
The measures described by Ramadorai and Balasubramaniam would change both how insurers remunerate distributors and how much discretion they have over distribution expenses. The authors present them as proposals in consultation papers, rather than as rules already in force.
- Cap commissions and count rewards or perks paid to distributors as commission.
- Reduce permitted expense ratios over five years.
- Set commissions on mandatory and credit-linked insurance products at or near zero.
- Prohibit compulsory bundling of insurance with another product or service.
IRDAI’s official circular listing confirms that a “Master Circular on Expenses of Management, including Commission, of Insurers, 2024” was dated 15 May 2024 (reference IRDAI/F&I/CIR/79/5/2024). That listing establishes the existence of an existing framework; it does not confirm the legal status or exact wording of the later proposals described in the Mint article.
Why the authors want distribution incentives to change
Insurance buyers often cannot readily see how an intermediary is paid, the authors argue. If remuneration rewards the initial sale more than keeping a policy suitable and active over time, the incentive may favor sales volume over durable coverage. That is their analysis of how incentives can affect distribution; the figures they cite do not prove that commissions caused lapses or poor outcomes.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →#1 Best Overall
They point to a comparison attributed to a recent IRDAI consultation paper: between FY2022–23 and FY2024–25, remuneration paid to life corporate agents grew much faster than new business premium. In general insurance, broker commissions also outpaced premiums sold through that channel. The figures below are reported by Mint from the consultation paper; the paper itself was not available for independent verification here.
| Measure | Reported change, FY2022–23 to FY2024–25 |
|---|---|
| Remuneration paid to life corporate agents | Up 125%, as reported by Mint from an IRDAI consultation paper |
| New business premium | Up 28%, as reported by Mint from an IRDAI consultation paper |
| General-insurance broker commissions | Up 173%, as reported by Mint from an IRDAI consultation paper |
| Premiums sold through the general-insurance broker channel | Up 37%, as reported by Mint from an IRDAI consultation paper |
These are growth comparisons over the stated period, not evidence that commission growth itself caused higher prices, weaker coverage or worse claims. A gap between remuneration and premium growth can prompt questions about incentive design, but it does not answer what a particular customer paid or received.
Rank #2
- COMPREHENSIVE LAYOUT: The death book planner organizer offers you a clear, orderly, comprehensive and detailed way to organize and record personal information and end-of-life wishes, allowing your loved ones to receive the necessary guidance and support during difficult times.
- DETAILED INTRODUCTION: This end of life planner organizer notebook contains 16 detailed organizational sections, such as the table of contents page, personal and family information, medical information, property and financial assets, beneficiaries, pet information, vehicles, final wishes, and life end arrangements. The complex planning process is simplified through tab classification.
- CAREFULLY DESIGNED: The Last Wish Organizer (7.36" x 10.4") offers a spacious format for easy reading and writing. The oversized label font makes it easier to find the directory you need. Ample writing space and label sections make organization effortless.
- STURDY AND RELIABLE: The golden corner guards and sturdy hardcover provide effective protection for the funeral planning book. And it includes a storage pocket, a pen holder and 8 blank note pages, making your files safe and reliable.
- FINAL WISHES PLANNER: For elderly parents, caregivers, or anyone who wants to leave a clear and organized roadmap for their loved ones, it can help you prepare for important end-of-life details. This comprehensive funeral plan ensures that your wishes are clearly stated and carried out in accordance with them.
Persistence matters, but channel comparisons need care
Insurance that lapses may fail to provide the long-term protection a buyer expected. To make the case for rewarding continuity, the authors cite IRDAI data reported by Mint: 48% of life policies survived to month 61. The article gives a 71% survival figure for policies sold online and 43% for policies sold by corporate agents.
The figures describe an observed difference between channels. They do not establish that the sales channel alone caused it; customer mix, policy characteristics and other factors may also matter. Their relevance to the commission debate is that regulators and consumers should care about whether policies persist, not just how many are sold.
Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Why lower commissions are not a complete consumer policy
Even if commission limits change distributor incentives, they cannot by themselves show whether an insurance product is good value. Buyers need to compare the cost and terms of cover with evidence about claims paid, claims delayed or declined, and the experience of customers with comparable products.
The authors cite Mint’s account of IRDAI figures for FY2024–25: on an amount-based calculation, about one quarter of the value of health claims received was not paid within that financial year. The reported share paid varied from 29% to 94% across insurers. The article also reports general-insurance grievances rising from about 78,000 to 137,000 over two years, with 69% related to claims. These are statistics as reported by Mint, not figures independently checked against the underlying IRDAI tables here. A share not paid within a financial year should not automatically be read as a share permanently rejected; the timing and status of unpaid claims matter.
Rank #4
Claims ratios and grievance totals also need context to support fair comparisons. Without comparable product-level data, a buyer may not be able to tell whether differences reflect the insurer, the cover, the types of customers insured or other factors.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.The complementary reform: publish usable claims data
The authors’ second recommendation is stronger claims disclosure. They say a 2017 committee recommended annual, machine-readable claims data at individual-product level, with individual and group policies reported separately. Such disclosure could let consumers, advisers and researchers compare what a policy costs with what it delivers, alongside information about intermediary remuneration.
Free tools Windows power users keep installed
One-click scans. No signup required.
Best Value
This is a distinct but complementary task to commission reform. Caps and rules on rewards address incentives; comparable claims data addresses whether buyers can assess outcomes. Neither substitutes for the other.
What to watch as the proposals move forward
The case for reform is strongest if eventual rules are clear across products and distribution channels, account for rewards as well as stated commissions, and can be enforced. The authors themselves stress enforcement: a cap on paper cannot guarantee that incentives change in practice. The available account does not establish how enforcement would work, whether the proposals have since been finalized, or what effect they would have on premiums or claims.
Nor should consumers assume that lower commissions will automatically mean lower premiums. The authors present lower distribution costs and better-aligned incentives as plausible benefits, not measured outcomes of these proposed changes. The more useful test will be whether the final framework improves transparency and continuity without weakening access to suitable advice, and whether buyers gain enough claims information to judge the value of cover.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
