The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular on the payment of distribution fees to motor insurance service providers. This circular was issued on 31st March, 2023.
It may be recalled that on 31st August, 2017, the Guidelines on Motor Insurance Service Provider (MISP) were notified. These guidelines provide that the distribution fees shall be paid to the MISP directly by the insurer or by the insurance intermediary as the case may be.
It may also be noted that the IRDAI subsequently issued several clarifications on these guidelines.
The IRDAI has now clarified that “The distribution fees payable to MISP shall be as per Board approved policy for payment of commission of the insurer.”