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Irdai draft norms do away with specific caps on commissions to agents

Proposes that commissions to agents can't exceed management expense limit

Irdai in talks with insurance firms hit by govt's mega PSB merger drive
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The objective of revising the commission guidelines, Irdai said, is to facilitate the insurers in development of new business models

Subrata Panda Mumbai
After consultations with the insurance industry, the regulator has done away with the specific caps on commissions to agents and intermediaries that it had proposed in an exposure draft in August.

Instead, it has suggested that the commissions paid by insurance companies, both life and non-life, should not exceed the expense of management (EoM) limits specified under the respective regulations framed for life and non-life industry.

In the earlier version of the draft, the Insurance Regulatory and Development Authority of India (Irdai) had proposed that the maximum commission payable under general insurance products, including health insurance products offered by general

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First Published: Nov 23 2022 | 8:04 PM IST

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