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    IRDAI proposes 20% cap on commission of insurance agents

    IRDAI proposes 20% cap on commission of insurance agents

    IRDAI proposes 20% cap on commission of insurance agents
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    By CNBCTV18.com  IST (Published)

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    The limit on agents’ commission, remuneration and reward has been proposed for general insurers and standalone health insurers.

    The Insurance Regulatory and Development Authority of India (IRDAI) has recently proposed a 20 percent cap on the agents’ commission for insurance companies. It has also released a draft consultation paper on the commission limit.
    The limit on agents’ commission, remuneration and reward has been proposed for general insurers and standalone health insurers.
    “In order to enhance responsiveness of the regulation to market innovation and to facilitate the insurers in development of new business models, products, strategies and internal processes and enable in easy compliance with the regulations while fulfilling the regulatory objectives... and also to provide the insurers the flexibility to manage their expenses…the Irdai (Payment of commission or remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016 has been reviewed," IRDAI said in a notification.
    "All the stakeholders are requested to submit their comments/ suggestions, if any, on the proposed draft regulations in the given format on or before 5.00 pm September 14, 2022, to sumandeep.ghosh@irdai.gov.in with a copy to uma@irdai.gov.in,", it added.
    Last month, the insurance regulator had also released a consultation paper on the expenses of management limit. It had also proposed setting up a new platform for sale, servicing and claims of insurance policies
    IRDAI had said that insurance platform would help insurance penetration in Tier 2, 3 areas and would also bring down existing commission rates.
    Earlier, CNBC-TV18 sources said that the IRDAI committee is likely to propose allowing life insurers to sell health insurance. The committee is likely to seek a nod for the distribution and manufacture of health insurance.
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