The Insurance Regulatory and Development Authority of India on 23rd November 2022, notified the Insurance Regulatory and Development Authority of India (Payment of Commission) Regulations, 2022 which shall come into force from 1st April 2023. These Regulations shall be reviewed once in every three years from date of notification, unless the review or repeal or amendment is warranted earlier.
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, 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.
The total amount of commission payable under life insurance products including health insurance products offered by life insurers shall not exceed the Expense of Management (EOM) limits specified under Insurance Regulatory and Development Authority of India (Expenses of Management of Insurers transacting life insurance business) Regulations, 2022as amended from time to time
All insurers, within 45 days of the expiration of each financial year, shall submit to the Authority the Board approved returns on payment of commission by the insurer to the insurance agents or intermediaries or insurance intermediaries. The formats for such information and data may be specified by the Authority from time to time.
