{
  "id": 10882058,
  "title": "Coverfox MD Sanjib Jha Questions IRDAI’s Insurance Reset, Flags Risk To Rural Penetration",
  "url": "https://urgent.news/2026/09/30/coverfox-md-sanjib-jha-questions-irdais-insurance-reset-flags-risk-to",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-30T06:55:54.000Z",
  "source": {
    "name": "Inc42",
    "slug": "inc42",
    "url": "https://inc42.com/buzz/coverfox-md-sanjib-jha-questions-irdais-insurance-reset-flags-risk-to-rural-penetration/"
  },
  "original_language": "en",
  "account": "Accel-backed insurance technology firm Coverfox has raised concerns over the proposed changes to the insurance distribution industry by the IRDAI. Founder Sanjib Jha wrote to the agency, questioning whether the proposed 2% cap on commissions for loan-linked protection products could adversely affect insurance penetration. Jha argues that lenders have invested in infrastructure to reach rural and low-income customers, and the new payout might not be enough to maintain this distribution model. He points out that loan-linked protection product commissions historically average around 30%, and a 2% cap could deter distributors from pursuing rural consumers. Jha also highlights that single-income households would suffer if borrowers die without insurance protection, emphasizing the critical role of loan-linked protection products. He proposes a \"Priority Sector Insurance\" framework to expand coverage in underserved areas based on geography, income, and product. Additionally, Jha suggests allowing established distributors to become insurers, provided they meet capital and conduct requirements, and leveraging digital infrastructure to improve last-mile distribution. The proposed changes, aimed at increasing transparency and sustainability in insurance distribution, have sparked criticism from industry stakeholders. The Insurance Brokers Association of India warns that the caps on commission and tighter expenses-of-management limits could lead to job losses, weaken independent brokers, and impact insurance distribution in Tier II and III markets. The broader insurance industry is urged to conduct impact assessments, engage in stakeholder consultations and establish an advisory group comprising industry, consumers, and academics.",
  "summary": "In a pushback to the IRDAI’s proposed overhaul of the insurance distribution industry, Accel-backed insurtech startup Coverfox’s founder Sanjib Jha…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}