Laws and sections by number or title, due dates, pages, and updates.
The Insurance Regulatory and Development Authority of India clarifies the distribution fee and reward structure for annual motor third-party insurance policies sold through the Motor Insurance Service Provider guidelines. The total distribution fee inclusive of reward is 3.25 percent, which consists of 2.5 percent commission plus a 30 percent reward on that commission. All insurers must follow these guidelines strictly.
What you must do
Key dates
Who is affected
Thresholds
Ask about this circular
[Image omitted. See the official document.]
| भारतीय बीमा विनियामक और विकास प्राधिकरण |
|---|
| INSURANCE REGULATORY AND |
| irdaí DEVELOPMENT AUTHORITY OF INDIA |
| IRDA/ INT/ CIR/ MISP / 142 / 09 / 2018 4th September, 2018
To All Insurers Al Insurance Intermediaries
Re: Payment of reward under MISP on stand-alone Motor Third Party Insurance
Attention is drawn to Authority's e-mail dated 7th December, 2017 to the Secretary General, General Insurance Council clarifying that commission/ remuneration on TP portion of premium is available from 4th year onwards (i.e. from the third renewal) and is 2.5% (for both stand-alone and package cover) under the MISP guidelines. In addition, it was clarified that a reward of 30% of commission/ remuneration under other than health segment is allowed on TP portion of both stand alone and package motor insurance for policies sold through MISP.
Since the Authority has been receiving some queries on the subject, it is clarified that that when it comes to annual Motor TP (both stand-alone TP and TP portion of package), the distribution fee inclusive of reward shall be 2.5%+30% reward, which is 3.25%.
All insurers are advised to follow the above guidelines strictly.
[Image omitted. See the official document.] Member (Distribution)
सर्वे नं. 115/1, फाइनेंशियल डिस्ट्रिक्ट, नानकरामगुडा, हैदराबाद-500 032, भारत | Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India (3): +91-40-2020 4000 वेबसाइट : www.irdai.gov.in (3): +91-40-2020 4000 Website : www.irdai.gov.in
