Ensure Transparency In Rewards To Insurance Agents, Intermediaries: IRDAI

Money & Banking
G Naga Sridhar

Hyderabad | Updated on

April 06, 2020

Published on

April 06, 2020

The Insurance Regulatory and Development Authority of India (IRDAI) has asked insurers to ensure proper transparency in payment of rewards insurers.

``It is observed that the board approved policy for the payment of rewards to insurance agents and intermediaries lacks transparency,'' T L Alamelu, Member - Distribution, IRDAI said in a circular sent all insurers.

The policy of rewards should specify a specific portion or rewards reasonably allotted to commission/remuneration to the individual insurance agents and intermediates subject to an overall limit in a consistent manner.

The insurance companies should also communicate in writing at the beginning of the year applicable from 2020-21 to agents and intermediaries about maximum rewards they can earn during the year and the criteria adopted for its determination.

The boards of insurance companies should also have an effective oversight on the implementation of the payment of rewards policy, the IRDAI member said.

Published on April 06, 2020

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