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Insurers must not book new or renewal business received directly from customers in the name of insurance intermediaries. Insurers must not pay remuneration to insurance intermediaries for such direct business. Insurance intermediaries must not receive remuneration from insurers on insurance business received directly from customers.
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Ref No. IRDAI/BRK/ORD/MISC/ 18/01/2019
To 25th January, 2019
All Insurers & Insurance Intermediaries
Re: Remuneration to Insurance Intermediaries for Direct Insurance Business- New & Renewal.
It has come to the notice of the Authority that Insurers are paying remuneration to Insurance Intermediaries for new and renewal insurance business received by them directly. Therefore, in exercise of the powers conferred under sub-section (1) of Section 14 of Insurance Regulatory and Development Authority Act, 1999, the Authority hereby advises the Insurers not to book new/renew the business directly received from customer/insured in the name of the Insurance Intermediaries and shall refrain from remunerating them for such direct new/renewal business. Further, no Insurance Intermediaries shall receive remuneration from Insurers on insurance business directly received by the Insurer from the customer/insured.
(Sujay Banarji)
Member (Distribution)
सर्वे नं. 115/1, फाइनेंशियल डिस्ट्रिक्ट, नानकरामगुडा, हैदराबाद-500 032, भारत | Survey No. 115/1, Financial District, Nanakramguda, Hyderabad-500 032, India
(Q) : +91-40-2020 4000 वेबसाइट : www.irdai.gov.in (Q) : +91-40-2020 4000 Website : www.irdai.gov.in
