Insurance Bill 2025 Introduces Stricter Norms to Combat Mis-Selling and Enhance Transparency
Published on: Dec. 29, 2025, 7:47 p.m. | Source: scanx.trade
The Insurance Bill 2025 introduces comprehensive reforms to combat mis-selling in India's insurance sector, where surrender rates reached 39.73% in FY2023-24. The legislation empowers IRDAI to control commission structures, mandate transparent disclosures, and address conflicts of interest, particularly in bank distribution channels that contribute 33% of life insurance new business. With banks earning ₹21,773 crores from financial product commissions in FY24, the bill aims to shift focus from aggressive sales to customer-centric practices.
