Committee Appointed by Regulator Suggests to Disclose Commission on Insurance Policy Document

To increase transparency and reduce mis-selling of insurance policies, the insurance regulatory body (IRDAI) may look at making it mandatory for insurance companies to reveal the commission paid on an insurance plan. Also, insurance aggregators and specialists should uncover the commission received on individual insurance policy documents.

Strangely, the move hasn’t been started by the IRDAI yet has been proposed by two committees shaped by the regulator. IRDAI had as of late formed eight committees, out of which the committee on Insurance Penetration and Distribution has recommended making the disclosure of commission/rewards on individual policies mandatory.
The insurance regulatory body (IRDAI) will likely take up the proposal in its board meeting scheduled for July 15.


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