Irda Reviewing Fees Of Life Insurance Agents

The Insurance Regulatory and Development Authority (Irda) is reviewing the commission structure for life insurance agents. The move is aimed at ensuring that the commission paid to agents is spread over the tenure of the policy instead of a higher commission payment in the first year.

A committee has been set up by Irda which comprises representatives from life insurance companies, insurance agents and officials from the regulatory body. Interestingly, the committee does not have any representatives from Life Insurance Corporation, which still controls nearly 97 per cent of the business in India.

Members of the committee said that work has already started on the issue. The move follows from LIC