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Congress MP Praveen Chakravarty Urges IRDAI to Rethink Commission Caps
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Moneycontrol•06-10-2026, 20:06
Congress MP Praveen Chakravarty Urges IRDAI to Rethink Commission Caps
- •Congress Rajya Sabha MP Praveen Chakravarty has written to IRDAI Chairman Ajay Seth and Finance Minister Nirmala Sitharaman, urging a simpler framework that balances consumer protection with intermediary incentives.
- •Chakravarty argued that the proposed large cuts in commissions are counter-intuitive and could weaken the intermediaries vital for expanding insurance coverage in India.
- •He criticized the complexity of the proposed structure, which prescribes nearly 100 different commission rates across four pages, comparing it to the complex GST system.
- •The Insurance Brokers Association of India has also warned that the commission caps could substantially reduce broker revenues, impact employment, and harm sector growth.
Key Questions Answered
Congress MP Praveen Chakravarty argued that the proposed commission cuts could weaken vital intermediaries, hinder industry growth, and discourage high-quality distribution. He also criticized the complexity of the proposed framework, which includes nearly 100 different commission rates across four pages.
The IRDAI consultation paper aims to reduce distribution costs, curb mis-selling, and improve value and outcomes for policyholders by reintroducing product- and channel-specific limits on commissions.
The consultation process regarding the IRDAI's proposed overhaul of distributor commissions remains open until October 25.
