The insurance regulator, IRDAI, has made some important changes. Now, there are limits on how much money insurance companies can spend on managing their expenses.
They also removed the limit on how much commission they can earn in different parts of their business.
The IRDAI announced these changes in a notice, and they will start from April 1, 2024.
One of the changes is about the commission that insurance companies can earn.
Before, there were different limits for different parts of their work, but now, they removed those limits.
According to the new rules, a general insurance company can earn a total commission of 30 percent,
and for health insurance, it’s 35 percent. There is a limit on the full commission they can get.
The notice also says that there is now a single limit for selling insurance policies.
This means that instead of counting the money spent on operations and commission separately, they have to keep it all within this limit.
Private companies can now spend more on commission and advertising.
