IRDAI To Consult Stakeholders Before Deciding, On Disclosure Of Commission

Insurance regulator IRDAI on Friday said it will hold extensive consultations with stakeholders before taking any decision with regards to mandatory disclosure of commissions paid to intermediaries on policy documents. The Insurance Regulatory and Development Authority of India (IRDAI) issued a statement in this regard following concerns expressed in some quarters regarding mandatory disclosure of commissions on the policy documents.

The concerns emanate from certain recommendations made by working groups constituted by the Insurance Councils. "It is hereby clarified that the Authority has not taken any decision on this matter," it said. IRDAI said it will hold extensive consultations with all stakeholders before any such decision is taken. In a letter to IRDAI, Insurance Agents Welfare Association (IAWA) had expressed concern over the recommendations of the working groups.

"...this is quite a surprising and shocking recommendation- when margins of sellers, service-providers, suppliers, manufacturers or any such vendors are not printed on any goods and services, then why should commission be printed on insurance policies?," it had questioned.. IAWA said the recommendation has created much apprehension and furore amongst over 10 lakh insurance agents and intermediaries all-over India. On the IRDAI's statement, Kapil Mehta, co-founder of SecureNow said the release is a reiteration of the process the regulator always follows. It is a healthy, democratic process that is being followed, he added.

(PTI)