Insurance Law and Insurance Regulation

The Insurance Regulatory and Development Authority of India (IRDAI) has released a two-part public consultation paper titled ‘Recalibrating Economics of Insurance Distribution’ (Consultation Paper). Part 1 sets out the proposed reforms. Part 2 presents IRDAI’s analysis of distribution costs and commission structures across the industry. Together, they propose the most significant overhaul of the Indian insurance regime. Comments are due by 25 October 2026.

On 23 September 2026, the IRDAI proposed major changes for the insurance distribution landscape through its Consultation Paper on “Recalibrating Economics of Insurance Distribution” (“Paper”).

The Supreme Court, in the case of New India Assurance Co. Ltd. & Ors. vs. M/s Louis Dreyfus Commodities India Pvt. Ltd. (2026 INSC 876) ('New India Assurance vs. Louis Dreyfus'), has held that where an insurance policy covers turnover on a running annual basis, the insurer cannot be held liable for a loss that occurs after the insured's actual turnover has exceeded the turnover for which premium has already been paid, even where the policy itself is expressed as an annual turnover based cover.