IRDAI urges lower commissions on Bima Sugam policies. Insurers agree to “zero commission” policies with a nominal fee. Motor insurance launches next quarter; health and term life by FY27.
The Insurance Regulatory and Development Authority of India (IRDAI) is aiming for a major overhaul in how insurance products are distributed on its upcoming digital marketplace, Bima Sugam.
The regulator is seeking “significantly” lower commissions for policies sold via the platform, CNBC-TV18 has learnt.
In a meeting held on March 17 with CEOs of insurance companies, IRDAI’s top brass discussed the roadmap for Bima Sugam and the proposed Public Insurance Registry (PIR), a consent-driven digital repository that will store policyholder data across insurers.
According to sources, insurers have agreed in principle to offer “zero commission” policies on Bima Sugam, with only a nominal platform fee to be charged.
This marks a shift from the current distribution model, where intermediaries earn commissions on policy sales.
Bima Sugam is envisioned as a unified digital marketplace that will allow customers to buy, service, and claim insurance policies seamlessly. Motor insurance products are expected to go live on the platform as early as next quarter, while health and term life insurance offerings are likely to be introduced by the second quarter of FY27.
CNBC-TV18 reached out to IRDAI for an official comment on these developments; a response was awaited at the time of publishing.
The PIR, which will operate alongside Bima Sugam, is being positioned as the backbone of this digital public infrastructure. Functioning as a consent-based data repository, it will allow insurers, regulators, and customers to access standardized insurance data across the policy lifecycle.
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The latest push is part of IRDAI’s broader effort to build a digital public infrastructure for the insurance sector.
(Edited by : Bhupendra Paintola)
