Along with the motor insurance policies, health insurance premiums are also set to increase from April 1, 2017.
IRDAI has allowed life insurance companies, non-life insurance and standalone health insurance companies to hike premium of health insurance policies too to remunerate insurance agents and brokers.
Last week, the insurance regulator has issued a circular in which it has allowed non-life insurers to increase or decrease the premium by 5% to comply with the new commission guidelines.
The insurance regulator said, “The regulations bring about certain revisions in commission/remuneration rates and also introduce the reward system. These may trigger insurers to revisit the pricing of their products as far as the costing input relating to commission/remuneration is concerned. ln this backdrop, it has been decided that general insurers who wish to revise the pricing of their products as a result of the new regulations, may do so without having to file a modification to the product under the product filing guidelines.”
According to the new commission guidelines, insurance companies can pay up to 15% of premium amount as the commission to agents and brokers. So far, life insurers were paying higher commissions in health insurance policies compared to general insurers and standalone health insurers.