Insurers, online distributors now file joint declarations on product commissions

Move is to ensure all charges are transparent and there is a fair disclosure on payments to web brokers, aggregators

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Insurance companies and their online distributors are now filing joint declarations before the Insurance Regulatory and Development Authority of India (IRDAI) giving details of the commissions that are being paid to the latter for sale of product.

This is to ensure that all charges are transparent and there is a fair disclosure on what is being paid to the online broker, web aggregator for usage of their services.

Product that are sold online are cheaper than those sold offline since distribution charges are lower. However, since the services of entities like online brokers and web aggregators are taken, insurers pay them certain charges.

IRDAI closely monitors all charges, commissions and brokerage paid to entities by insurers. To ensure that there is accountability and clear demarcation on the charges being paid, joint declarations are being filed.