The Insurance Regulatory and Development Authority of India on 23rd August 2022, notified the Draft IRDAI (Payment of Commission or Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Draft Regulations, 2022. This regulation shall be remain in force for a period of 3 years from the date of publication in the Official Gazette.
All the stakeholders are requested to submit their comments/suggestions, if any, on the proposed draft regulations in the given format on or before 5.00 PM 14th Sep 2022 to sumandeep.ghosh@irdai.gov.in with a copy to uma@irdai.gov.in
The objectives of these Regulations are:
- To enhance responsiveness of the regulation to market innovation.
- To facilitate the insurers in development of new business models, products, strategies and internal processes and enable in easy compliance with the regulations while fulfilling the regulatory objectives.
- To provide the insurers the flexibility to manage their expenses based on their growth aspirations and the ever-changing insurance needs with an objective to improve insurance penetration.
These regulations shall include payment of commission or remuneration or reward, to insurance agents and insurance intermediaries as defined in the Insurance Act, 1938, the Insurance Regulatory and Development Authority Act, 1999 and Regulations issued thereunder. Every insurer shall have an explicitly written policy for payment of commission or remuneration or reward to insurance agents and insurance intermediary which shall be approved by the Board of the company.
These regulations shall not be applicable to insurance products specified under Insurance Regulatory and Development Authority of India (Micro Insurance) Regulations, 2015 and such other insurance products as may be specified by the Authority from time to time.
