Policy tagging, public mis-selling records, and commission clawbacks proposed for insurance salespersons under new IRDAI proposed guidelines

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a draft consultation paper. The proposal suggests commission clawbacks by insurers and aims to establish public accountability, inform prospective buyers, and alert future employers about an agent's mis-selling history.

Public disclosure of mis-selling records and mandatory clawbacks will require insurers and corporate intermediaries to overhaul agent recruitment background checks and strengthen compliance.