The Insurance Regulatory and Development Authority of India on 1st August 2022, notified the Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting General or Health Insurance Business) Regulations, 2022 which shall be applicable to Insurers transacting General Insurance or Health Insurance business.
As per the Draft regulation, No insurer carrying on General Insurance Business or Health Insurance Business in India, shall spend an amount as expenses of management exceeding the amount computed as lower of 30 percent or Expense Rate, multiplied by gross premium written in India in that financial year.
Provided that the amount of commission or other remuneration paid to insurance agents and insurance intermediaries in respect of their business transacted in the financial year is as allowed by the Authority from time to time.
An insurer having his principal place of business in India and having branch offices outside India shall be allowed an additional allowance towards share of Head Office expenses. Provided such allowance shall not exceed 10 per cent of the gross premium income written outside India through such branch during the year.
All insurers transacting General insurance or Health Insurance business, at the expiration of each financial year, shall prepare with reference to that year, Return of Expenses of Management as per the format specified under Schedule I. The Return shall be certified by the statutory auditors of the Insurer and the certificate duly signed by at least one of the statutory auditor shall be filed in format given in Schedule- II.
