IRDAI has amended the insurance bill 2015 in which it has clarified that insurance companies will have to take a call on payment of trail commission on orphan life insurance policies on their discretion.
So far, life insurance companies have paid trail commission to agents even if they left the company. With this amendment, insurance agents who have left the insurance companies may not receive trial commission.
This is also applicable for hereditary commission. Life insurance companies disburse hereditary commission to the nominee of the deceased agent.
Currently, IRDAI has capped trail commission at 7.5% of the annual report.
