Irdai Tightens Insurance Sales Rules: Policies To Name Authorised Seller From January 2027

Insurance buyers will soon be able to identify the person responsible for selling them a policy. The Insurance Regulatory and Development Authority of India (Irdai) has notified amended rules requiring insurance documents to carry the name and functional identity of the authorised salesperson involved in the transaction.

The Irdai (Insurance Intermediaries) (Amendment) Regulations, 2026 were notified on July 30. The changes aim to improve transparency and make it easier to trace responsibility when customers complain of mis-selling, incorrect promises or inadequate disclosure.

Seller Details To Appear On Policy Documents

From January 1, 2027, the proposal form, insurance policy and certificate of insurance will have to record the name and functional identity of the person who sold the policy. This may include a specified person, point-of-sales person, designated person, authorised verifier or another authorised salesperson, according to a recent report by The Economic Times.

The documents must also mention the mobile number and email address of the branch or office through which the policy was sold. Corporate agents will have to maintain policy-wise sales records in a format that can be accessed remotely by the regulator.

Where a customer purchases a policy directly through the digital platform of a corporate agent, and no salesperson is involved, the documents must instead disclose the telephone number and email address of the corporate agent’s principal officer.

The change could be important in sales made through banks and other large corporate agents. A customer may know the institution’s name but find it difficult to establish which employee or representative handled the transaction. Linking each sale to an identified person may provide a clearer trail during a complaint or investigation.

Registration To Continue With Annual Fee

Irdai has also moved insurance intermediaries away from the fixed-term registration system. Once granted, registration will remain valid until it is suspended, cancelled or surrendered, provided the intermediary pays the prescribed annual fee and meets regulatory requirements.

Existing corporate agents holding three-year registrations must apply for a fresh certificate under the amended framework by January 31, 2027. A delayed application may be considered up to March 31, 2027 after payment of the applicable fee and an additional Rs 750. Those failing to apply by then will cease to act as corporate agents and will have to seek registration afresh.

Stronger Disclosure And Reporting Duties

The regulations also tighten reporting requirements. Corporate agents whose insurance intermediation revenue exceeds half of their total revenue must maintain professional indemnity insurance.

Those with majority foreign shareholding or annual commission exceeding Rs 10 crore will have to disclose details of commissions, related-party transactions, profits and dividends to Irdai every year. These disclosures will also have to be published on their websites.

The framework seeks to reduce routine administrative work for compliant intermediaries while making individual insurance sales easier to track. For policyholders, the key test will be whether the identity trail helps resolve mis-selling disputes faster and fixes responsibility at the point of sale.

FAQs

1. What details will insurance documents carry from January 1, 2027?

Proposal forms, policies and insurance certificates must mention the name and functional identity of the authorised person who sold the policy.

2. What happens when a policy is bought directly online?

If no salesperson is involved, the documents must provide the telephone number and email address of the corporate agent’s principal officer.

3. How will the new rules help policyholders?

The identity trail may make it easier to establish responsibility and pursue complaints involving mis-selling, incorrect promises or inadequate disclosures.