An Insurance Regulatory and Development Authority (IRDAI)-delegated committee’s proposal to make it compulsory to uncover insurance commissions charged on contracts has revived an old debate, forcing the regulator to explain that no decision has been made.
The committee of CEOs formed to recommend changes in finance, costing, and insurance policies had recommended that the specific amount of commissions charged on each approach be mandatorily printed in the interest of transparency.
The Insurance Agents Welfare Association (IAWA) has opposed the move saying that it will influence livelihoods and hurt insurance entrance. In a letter to IRDAI chairman Debasish Panda, IAWA said the action, whenever carried out, will be like printing the edges of service providers or vendors on their items.
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