The Insurance Regulatory and Development Authority of India (IRDAI) has revised its guidelines regarding the commission for long-term motor insurance policies.
The recent policy change brings these long-term policies in line with the standard one-year motor insurance policies.
Under the updated regulation, insurers are now permitted to provide commissions within the expense management framework for long-term policies.
For three-year comprehensive motor insurance policies for four-wheelers, the commission cap was originally set at 15percent for the first year, 10 percent for the second year, and 5percent for the third year.
The recent guidelines have granted insurers the freedom to tailor commission structures according to their management expenses.
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