# IRDAI to examine LIC agents’ demands as LIAFI opposes key distribution reforms

> IRDAI reviews LIC agents’ demands as LIAFI blocks insurance distribution reforms before October 25 deadline.
- Title: IRDAI to examine LIC agents’ demands as LIAFI opposes key…
- Summary: IRDAI reviews LIC agents’ demands as LIAFI blocks insurance distribution reforms before October 25 deadline. IRDAI will adjust insurance distribution reforms…
- Keywords: irdai, liafi, lic, insurance, commissions, distribution, reforms, october 25, news, india, examine, agents
- Source: mint — https://livemint.com/companies/irdai-to-examine-lic-agents-demands-as-liafi-opposes-key-distribution-reforms-ahead-of-october-25-deadline-11792778423510.html
- Author: Aachal Maniyar
- Published: 2026-10-23T19:23:47+00:00
- Read time: 1 min
- Topics: irdai, liafi, lic, insurance, commissions, distribution, reforms, october 25, news, india
## IRDAI to examine LIC agents’ demands
IRDAI will review seven key demands from LIAFI ahead of October 25 deadline for stakeholder feedback on distribution reforms.
## LIAFI opposes key distribution reforms
LIAFI has opposed core elements of IRDAI’s proposed framework including commission caps and public disclosure of agent payouts.
## LIAFI’s commission demands
LIAFI seeks higher first-year commissions of 27 percent for 5-9 year policies, 30 percent for 10-14 years, and 35 percent for 15+ year policies.
## LIAFI’s renewal commission demands
LIAFI requests 7.5 percent renewal commissions from second to sixth policy year and 6 percent from seventh year until maturity.
## Agents’ earnings concerns
LIC agents earn an average monthly commission of ₹16,774 while LIC’s commission expenditure declined 4.55 percent in FY26.
## LIAFI’s opposition to clawbacks
LIAFI opposes automatic commission clawbacks based solely on complaints, policy surrender, lapse, or cancellation.
## IRDAI’s position
IRDAI will factor LIAFI’s demands into final guidelines but unlikely to reverse broader reforms.
## What lies ahead
IRDAI must balance adjusting commission levels and disclosure rules while advancing goals of lower costs and reduced mis-selling by October 25.
## Key takeaway

IRDAI will adjust insurance distribution reforms after LIAFI opposes commission caps and clawbacks ahead of October 25 feedback deadline.