The showroom quote looks like part of the car deal. It is a separate sale, and IRDAI's September 23 consultation paper treats it as one. Three proposals matter to anyone buying a new vehicle: a mandatory display of the digital marketplace option, including a QR code; a ban on denying cashless repair because the policy was bought somewhere else; and a nil commission limit for distribution entities on new-vehicle third-party cover. Comments close on October 25, 2026.

Method and data basis

Built from Section 12 of the IRDAI paper as reported by CNBC-TV18, Mint and Livemint (September 24, 2026). Figures from the paper: average motor commission near 24 percent, ranging from 13 to 50 percent; OEM brokers and motor insurance service providers hold around 30 percent share and collected roughly Rs 7,050 crore of commission on about Rs 29,000 crore of motor premium in FY25; proposed caps are nil for distribution entities on new-vehicle third-party and 5 percent on own damage, personal accident and legal liability cover.

What the draft rules give you

  • A visible alternative: the dealer must display and tell you about the option to buy through the digital marketplace, so the counter quote stops being the only quote in the room.
  • Cashless repair without loyalty: a dealer cannot refuse cashless service because you did not buy the policy through them. This is the most directly useful protection in the draft.
  • Scrutiny of dealer incentives: arrangements between dealers, OEMs and insurers that restrict your choice, including performance-linked incentive plans, come under review.
  • Cheaper mandatory cover, eventually: nil commission on third-party reflects that registration requires insurance anyway; the saving only reaches you if it is passed through.

What to do at the showroom today

  1. Get a quote before you go. A five-minute online quote for your exact IDV gives you the number to beat.
  2. Ask for the split: third-party premium and own-damage premium as separate lines, then add-ons as separate lines again.
  3. Decline add-ons you cannot explain. Engine protect, zero depreciation and the rest are optional; each one is negotiable.
  4. Check the IDV, not just the premium. A low premium often means an under-insured vehicle at claim time.
  5. Keep the cashless argument out of it. Where you repair is a network question, not a purchase-channel question, even under today's rules.
  6. Photograph every page of the proposal before signing, including the disclosure of who is selling it.

What to watch

Watch whether the final rules keep the QR display requirement, which decides whether the marketplace option reaches every showroom or only willing dealers. And watch the commission pass-through: the history of distribution reform is that caps land first and prices follow only if competition forces them. The consultation deadline is October 25, 2026.