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Industry Specific - Insurance Central Ministry of Finance Insurance Act, 1938

Guidance note- Board Policy of the insurer on the commission structure

31-Mar-2023 | Ref No: IRDAI/INT/CIR/MISC/82/3/2023

IRDAI has issued a circular regarding the Guidance note- Board Policy of the insurer on the commission structure to have a clear and transparent board policy on their commission structure to ensure fairness, transparency, compliance, efficiency, and industry reputation in the insurance distribution process.
By virtue of this, the board policy on commission structures for intermediaries shall include the following elements:
1. Objectives and Principles
2. Fairness and Reasonableness
3. Good Distribution practice.
4. Regular review
5. Market conduct
6. Monitoring and Reporting

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