Insurance: Now insurance will be cheaper, IRDAI has put a cap on agent commission and expenses, know how your premium will reduce.

News India Live, Digital Desk: IRDAI has taken historic steps to increase transparency and reduce costs in the insurance sector. According to the new guidelines issued in March 2026, the operating expenses of insurance companies (Expenses of Management) and high agent commissions are being reduced, the direct benefit of which will be given to the customers in the form of lower premiums.1. Scrapping High Commissions: IRDAI has proposed to eliminate the huge ‘Upfront Commission’ paid to life insurance agents. New rule: Now the commission of agents will be spread as ‘Trail Commission’ during the entire tenure of the policy. Benefit: This will reduce the marketing and acquisition costs of insurance companies, allowing them to offer policies at lower prices to customers.2. Reduction in ‘Expenses of Management’ (EoM) The regulator has set strict limits on the administrative and management expenses of companies. Companies will now have to increase their efficiency and cut down on unnecessary expenses. Experts believe that this step can lead to a decline of 10% to 20% in insurance premiums.3. Benefits of digital and ‘pay as you drive’ policiesDirect plans: By purchasing insurance directly from the website or app, the agent commission is saved, which has already made the premium cheaper. Customization: Models like ‘pay as you drive’ are now being fully implemented in motor insurance. That means if you drive less, you will have to pay less premium also.4. Historic change in health insurance (Health Insurance Update) No age limit: Now even people above 65 years of age can buy a new health policy. Reduction in waiting period: The waiting period for pre-existing diseases has been reduced from 4 years to 3 years. Faster claim settlement: It is now mandatory to approve cashless claims within 1 hour, thereby simplifying the process of hospitalization. Is.5. ‘Anywhere Cashless’ facility: Now policyholders can get cashless treatment in any hospital, whether the hospital is in the network of the insurance company or not. This increasing competition has also forced companies to reduce their premium rates.