From mint · Aachal Maniyar · · 1m 30s
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.
In brief
IRDAI reviews LIC agents’ demands as LIAFI blocks insurance distribution reforms before October 25 deadline. IRDAI will adjust insurance distribution reforms after LIAFI opposes commission caps and clawbacks ahead of October 25 feedback deadline. Originally reported by mint.
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.
The bottom line
IRDAI will adjust insurance distribution reforms after LIAFI opposes commission caps and clawbacks ahead of October 25 feedback deadline.
