Explained on 26 October 2026. This is an educational answer drawn from the dated article below; examples are hypothetical unless a specific source observation is identified.
How it works
The two figures can use different bases, timing and contract provisions. A commission headline cannot replace the policy’s surrender terms or an actual dated quotation from the insurer. Before comparing continuation and exit, identify the coverage being given up and the relevant cash-flow dates as well as the quoted amount.
A simple example
A hypothetical customer reads that a distribution-cost percentage may change and assumes their surrender payment rises by the same percentage. There is no such arithmetic link established by the consultation alone. The actual policy and insurer’s applicable quotation must answer the cash question.
What to check
- Use the policy’s own terms for surrender calculations.
- Separate distributor remuneration from customer proceeds.
- Ask the insurer for a current, applicable quotation.
Read the full event and evidence
Insurance Distribution Reforms: IRDAI’s 31 October Deadline Is for Feedback, Not New Policy Charges explains the original event, its dates and the supporting documents. Event context: 24 October 2026 extension; feedback to 31 October.