INSURANCE
IRDAI revises guidelines on commission on long-term motor insurance
Jul-20-2024

The Insurance Regulatory and Development Authority of India (IRDAI) has directed the insurance companies that the Payment of Commission, remuneration, rewards and distribution fees under Long Term Motor Insurance Policies' has become redundant. The said change is applicable for policies with standard one-year motor insurance. As of now, insurance companies can offer commission within the expenses of management. The said move granted insurers the freedom to tailor commission structures according to their management expenses.

Earlier, insures had offered up to 17.5% commission of the premium as the first-year commission for five-year comprehensive motor insurance policies covering two-wheelers. This commission was reduced to 10% for the second and third years and 5% for the fourth and fifth years. For three-year comprehensive motor insurance policies for four-wheelers, the commission cap was set at 15% for the first year, 10% for the second year, and 5% for the third year.

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