Exposing the illegal nexus between insurers and intermediaries, the insurance regulator IRDAI has said, the business procured directly by insurers from clients should not be routed through intermediaries and commission paid on them
“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. We advise the insurers not to book new/renew the business directly received from customer/insured in the name of the insurance intermediaries and should refrain from remunerating them for such direct new/renewal business,’’ said , Sujay Banarji, member, Distribution, IRDAI on Tuesday. .
Further, no insurance intermediaries should receive remuneration from insurers on insurance business directly received by the lnsurer from the customer/insured.
IRDAI has exercised its powers conferred under sub-section (1) of Section 14 of lnsurance Regulatory and Development Authority Act, 1999.