Insurance concept, Businessman holding red umbrella on falling rain with protect with icon business, health, financial, life, family, accident and logistics insurance on city background
| Photo Credit:
ipopba
In a move aimed at curbing mis-selling and improving service quality, the Insurance Regulatory and Development Authority of India (IRDAI) has proposed a ten-fold increase in penalties for acts of omission by the principal officers of corporate agents.As per the draft IRDAI (Insurance Intermediaries) (Amendment) Regulations, 2026, the penalty for such violations has been proposed to be increased to ₹10 crore from the current ₹1 crore.“These measures are expected to strengthen supervisory oversight, curb instances of mis-selling and improve service quality across insurance intermediaries,” the regulator said.Transparency and accountabilityThe draft regulations also seek to enhance transparency and accountability while promoting ease of doing business through simplification of regulatory processes, reduction in compliance costs and greater certainty and continuity in business operations for insurance intermediaries.As part of the proposed transparency measures, corporate agents, insurance brokers, insurance marketing firms and web aggregators earning more than ₹10 crore in commission income in a financial year will be required to annually disclose to IRDAI details relating to commissions earned, related-party transactions, profits and dividends. These entities will also have to publish the disclosures on their websites.According to the regulator, the proposals are intended to strengthen accountability and improve governance standards across the insurance distribution ecosystem while facilitating smoother business operations for intermediaries.Published on June 22, 2026
