# IRDAI proposes commission claw-back for insurance mis-selling 2026-09-24T15:56:56+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a sweeping reform of insurance distribution, including clawing back commissions from agents and salespersons when a policy is found to have been mis-sold. The consultation paper also seeks to link the identity of salespersons to the policies they sell and make records of mis-selling publicly available through the Public Insurance Registry. The proposals include a detailed suitability framework for life insurance sales above a defined ticket size, requiring insurers to document customer needs and maintain an audit trail. IRDAI has listed practices that could attract disincentives, including selling regular-premium products as single-premium, failing to explain surrender values, and inducing customers to surrender existing policies based on misleading claims. The regulator has also proposed capping first-year commissions at 5-20% and restricting renewal payouts to 5-10%. Livemint.com reports that IRDAI's proposal states mere customer consent or signature should not absolve the insurer or intermediary from responsibility for selling an unsuitable product. The New Indian Express reports that the industry believes lower commissions may slow growth and discourage post-sale servicing, but notes these are draft norms and the regulator may refine them after consultation. ## Indian Opinion Analysis Both outlets report the reform neutrally, but Livemint.com leads with the consumer protection angle, detailing how mis-selling records would become public and why a signature alone may not shield sellers. The New Indian Express frames the story around the tension between consumer protection and industry growth, explicitly reporting insurer concerns that lower commissions could disrupt distribution and shrink choice. Neither source overstates the other's emphasis, but the industry pushback is only fully aired in the Express. The balanced reading: IRDAI's draft norms face a finalisation phase where industry feedback could soften the caps. The regulator's next step is stakeholder consultation before issuing final regulations. ## Coverage - livemint.com (neutral report) Leads with consumer protection details, no editorialising or industry critique. - newindianexpress.com (neutral report) Reports both IRDAI's intent and industry concerns about growth impact, no editorial stance. Tags: commission claw-back, insurance mis-selling, IRDAI, Public Insurance Registry Canonical: https://indianopinion.org/irdai-proposes-commission-claw-back-for-insurance-mis-selling/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/irdai-proposes-commission-claw-back-for-insurance-mis-selling/#story-in-brief