# Irdai commission cap plan may hit low-income life covers 2026-08-14T04:03:55+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The insurance regulator Irdai is considering an effort-based commission framework that would rank distributors by the selling and servicing effort they put in. Individual agents would top the hierarchy, while OEM channels like auto dealers and web aggregators would face the lowest commission caps. The Times of India reports that life insurers fear this could make low-premium products unviable, especially group credit-life covers sold through banks, NBFCs and microfinance institutions to low-income borrowers. Corporate agents and brokers accounted for over Rs 61,000 crore or about 60% of private insurers' new business premium in FY25. Industry officials warn that if commissions fall below a viable level, distribution of credit protection covers may decline, undermining the government's 'Insurance for All by 2047' goal. India's life insurance penetration stands at just 2.7% of GDP. ## Coverage - timesofindia.indiatimes.com Tags: bancassurance, commission cap, financial inclusion, group insurance, IRDAI, life insurance Canonical: https://indianopinion.org/irdai-commission-cap-plan-may-hit-low-income-life-covers/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/irdai-commission-cap-plan-may-hit-low-income-life-covers/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.