Insurance Companies: IRDAI has set limits on the management of expenses of insurance companies. Also, segment limit on commission has been removed. IRDA has issued a notification in this regard.
Insurance Companies: There is important news for insurance companies. Insurance regulator IRDAI has set limits on the management of expenses of insurance companies. Also, segment limit on commission has been removed. IRDA has issued a notification in this regard. The new rules will come into effect from April 1, 2024.
Segment limit on commission removed
According to the notification issued by IRDA, the regulator has removed the segment limit on commission. According to the new rules, the general insurance company can give a total commission of 30 percent. The limit for all its segments combined and health is 35%. There is a limit on the full commission.
According to the notification, a single limit has been imposed on policy sales. That is, instead of adding the expenses of operation and commission separately, they will have to be kept together within this limit. Private companies will be able to increase expenditure on commission and advertising.
