Online insurance providers may have to disclose commmission paid

 Pushing transparency and customer protection, online platforms selling insurance policies such as Policybazaar, Acko and other corporate agents may have to disclose information about the commissions they receive. This will also help in stopping misselling of products that have high commission or rewards.

IRDAI is considering a proposal that seeks to have a single limit for expenses made by insurance companies including operating expenses, commission and rewards given by insurers. 

The proposal aims to ensure appropriate market conduct and expense managent by insurance companies.

This can also help the customers by making them aware of what is genuine advice and business interest. Also will give them a clear idea whether agents are trying to sell a high commission insurance product.

Even if there are caps on commissions agents are offered high rewards. Intermediaries are entitled toget rewards of not more than 30 percent as commission or remuneration

Insurance companies cannot offer any rewards to individual employees of intemediaries. They may also not be allowed to provide any other remunerations.