{
  "id": 9738955,
  "title": "Bought insurance elsewhere? Cashless repair stays",
  "url": "https://urgent.news/2026/09/25/bought-insurance-elsewhere-cashless-repair-stays",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T08:17:03.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/insure/you-may-soon-buy-motor-insurance-via-bima-sugam-when-buying-a-new-car-dealers-cant-deny-cashless-repairs-if-irda-proposals-are-implemented/articleshow/134479633.cms"
  },
  "original_language": "en",
  "account": "The Insurance Regulatory and Development Authority of India (IRDAI) has proposed changes to motor insurance distribution that could make the process more transparent and improve customer options. These changes would impact automobile dealers, OEM-linked brokers, insurers, and other distributors significantly.\n\nOne of the key proposals is to provide customers with a direct digital route to purchase motor insurance, bypassing the vehicle dealer's exclusive option. This would enable customers to compare available options when buying or renewing a policy. Moreover, dealers would need to inform new vehicle buyers about the MII platform option, including a QR code to access it.\n\nAnother important change is protecting customers from cashless repair denials based on where they purchased their insurance. Insurance distribution entities and policy service points (PoSPs) would not be able to deny cashless repair services simply because the customer did not buy their insurance policy from that dealer.\n\nThe proposal also seeks to prevent insurance sales from being tied to incentives that could disadvantage customers. This includes service-level agreements and performance-linked incentive plans that reward dealers for selling insurance policies. By eliminating these incentives, the aim is to ensure that customers make insurance choices based on policy terms and price rather than dealer sales incentives.\n\nLastly, IRDAI has proposed lower commissions for mandatory third-party insurance and easy-to-sell motor insurance for new vehicles. The current average commission rate is around 24%, with some dealers receiving up to 50% of the premium. The regulator believes that reducing distribution costs could lead to better pricing and improved affordability for consumers, although the final impact will depend on how insurers price their products after the reforms.",
  "summary": null,
  "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."
}