IRDAI Commission Reset: Why Motor Third-Party Insurance Faces Risk | Nilesh Sathe Explains

IRDAI’s proposed commission changes could put certain insurance segmen¤ts under pressure, particularly third-party motor insurance and low-ticket life insurance policies. A zero-commission proposal for third-party motor insurance could affect distribution and insurance awareness, while lower commissions on small-ticket policies may make them less attractive for insurers and distributors. Nilesh Sathe, former member of IRDAI, explains which pockets could face the biggest impact and why lower-income and lower-middle-class customers could be affected. He also discusses the potential changes in minimum sum assured and the broader implications for insurance penetration.