IRDAI revises its guidelines on commission on long-term motor insurance.

Banking & Finance

The Insurance Regulatory and Development Authority of India (IRDAI) has updated its guidelines regarding commission structures for long-term motor insurance policies. The revised regulations aim to streamline commission payments to intermediaries such as insurance agents and brokers. This move is part of IRDAI's ongoing efforts to enhance transparency and fairness in the insurance industry, benefiting both insurers and policyholders. Earlier, insurance companies used to offer commission of up to 17.5% in the first year on five-year comprehensive motor insurance policies, which was for two-wheelers. As per the commission structure, it increases to 10% in the second and third years, and further reduces to 5% in the fourth and fifth years.


      Revised guidelines align long-term motor insurance commissions with short-term policy standards for better consistency.

      Insurers can now provide commissions within the expense management framework for long-term policies.

     

 

     


About IRDAI,

Founded: 1999
Chairman: Debasish Panda
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