IRDAI proposes zero commission on motor third-party cover for buyers

IRDAI’s consultation proposes zero distributor commission for mandatory third-party motor cover and tighter disclosure rules. The…

In this short

MOTOR INSURANCE IRDAI Targets Motor Cover Commissions A consultation could change how mandatory third-party insurance is sold, but the draft is not final.
WHAT CHANGED Third-Party Commission Could Be Zero 0% The proposed ceiling for distribution entities on mandatory motor third-party cover.
THE OTHER CAP Agents Could Get 2.5% 2.5% The consultation proposes this limit for agents and associates on the same cover.
WHY IT MATTERS Commissions Need More Visibility 24% IRDAI’s FY2024-25 motor-insurance analysis reported this average, with rates ranging from 13% to 50%.
WHAT HAPPENS NEXT Comments Close 25 October 25 Oct 2026 The commission grids, disclosures and bundling safeguards can still change before final rules.
READ THE FULL STORY Check What The Draft Means See the buyer checks, proposed safeguards and what remains unchanged today.
READ THE FULL STORY Get the full breakdown Sources, numbers and what to watch next.