Now insurance will be cheaper, IRDAI has put a cap on agent commission and expenses, know how your premium will reduce:

News India Live, Digital Desk: IRDAI has taken historic steps to increase transparency and reduce costs in the insurance sector. According to the new guidelines issued in March 2026, the operating expenses of insurance companies (Expenses of Management) and high agent commissions are being cut, which will directly benefit the customers. low premium Will be available as.

1. Scrapping High Commissions

IRDAI has proposed to abolish the huge ‘upfront commission’ paid to life insurance agents.

New rule: Now the agents’ commission will be spread over the entire tenure of the policy as ‘Trail Commission’.

Benefit: This will reduce the marketing and acquisition costs of insurance companies, allowing them to offer policies to customers at lower prices.

2. Reduction in ‘Expenses of Management’ (EoM)

The regulator has set strict limits on the administrative and management expenses of companies. Companies will now have to increase their efficiency and cut down on unnecessary expenses. Experts believe that this step will reduce the insurance premium. 10% to 20% decline Can come.

3. Benefits of digital and ‘pay as you drive’ policy

Direct Plans: Buying insurance directly from the website or app saves on agent commission, making the premium already affordable.

Customization: Models like ‘Pay as You Drive’ are now being fully implemented in motor insurance. That means if you drive less, you will have to pay less premium also.

4. Historic changes in health insurance (Health Insurance Update)

No age limit: Now even people above 65 years of age can buy a new health policy.

Reduction in waiting period: Reducing the waiting period for pre-existing diseases from 4 years 3 year Has been done.

Faster Claim Settlement: Cashless claims are now mandatory to be approved within 1 hour, thereby simplifying the process of hospitalization.

5. ‘Anywhere Cashless’ facility

Now policyholders can get cashless treatment at any hospital, whether the hospital is in the network of the insurance company or not. This increasing competition has also forced companies to reduce their premium rates.