Page 51 - Insurance Times August New 2023

Glimpses of the Event

New commission rules will benefit policyholders & insurance

firms: IRDAI chief
The new norms on expenses of management (EoM) and commission payouts, effective this financial year, will work
in favour of policyholders, Insurance Regulatory and Development Authority of India (IRDAI) Chairman Debasish Panda
said.
in an exclusive interview with Moneycontrol, Panda said that insurance companies would be answerable to their
boards when fixing commissions that they pay to their agents. This accountability would ensure fair play, the IRDAI
chief added. “The revamped regulatory framework aims to promote healthy competition enabling market forces to
operate, rationalising the cost of insurance and ultimately benefitting the policyholders," said Panda.
Since April 1, 2023, life and general insurance companies do not have to adhere to any specific ceiling on commis-
sions paid to agents, distributor banks and other intermediaries.

44 August 2023 The Insurance Times