The insurance regulatory body, Irdai, has announced an extension of the final deadline for providing feedback on its consultation document regarding distribution reforms until October 31, 2026. Previously, this deadline was set for October 25, 2026, as stated in the regulator's press release on Saturday.
In September, Irdai released a consultation document proposing a complete overhaul of the insurance distribution system and invited interested parties to submit their comments and suggestions. To date, the regulator has received over 650 comments.
Irdai explained that extending the last day for submitting comments to October 31, 2026, was done considering the significant interest and to ensure broader participation. This will provide additional time for stakeholders and the public to present their views and proposals.
The proposed changes include lowering the Expense of Management (EoM) limits for insurers, as well as establishing commission caps specific to products and channels. Furthermore, separate limits are planned for individual and corporate distributors, with higher limits set for individuals to account for the greater sales effort expended.
Previously, the Insurance Brokers Association of India (IBAI) had stated that it requested an extension of the feedback submission deadline until the end of December 2026.
At a recent event, the Chairman of Irdai, Ajay Seth, stated that the regulator is engaging with insurers and distributors ahead of the initial deadline of October 25, 2026. He noted that the received feedback varies depending on the groups of stakeholders and emphasized the need to explain the business and economic rationale behind their recommendations, including the benefit to policyholders. Irdai added that it will carefully review every proposal.