New Delhi, Sept. 30 -- Coverfox founder and MD Sanjib Jha has raised concerns over the Insurance Regulatory and Development Authority of India's (IRDAI) proposed 2% commission cap on loan-linked insurance, warning that the move could make it economically difficult to enrol and service borrowers in rural and underserved markets.

Jha's concerns centre on whether the proposed cap could unintentionally undermine the last-mile distribution network needed to expand insurance coverage across smaller towns and rural India.

In an open letter to IRDAI, Jha said the regulator's efforts to curb dark patterns, eliminate coerced bundling and improve transparency in insurance distribution were welcome. However, he argued that the proposed changes shou...