International BusinessIrda asks insurers for info on commission paid to banks
Sectoral watchdog Insurance Regulatory and Development Authority (Irda) today asked insurance companies to provide information on commission paid to the banks for selling policies.
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"In order to analyse the impact of various payments made to banks on the premiums and balance sheets of insurers, IRDA has decided to call for the required information," Irda said in a note to all insurers.
The insurance regulator said it is receiving number of representations regarding the structure of payments of commission to the banks acting as corporate agents.
The issue needs detailed examination to ascertain sustainability of the business through bancassurance channel and its impact on the insurers and the policyholders, it said.
The information would be provided from April 1, 2008 to March 31, 2009 and between April 1, 2009 and June 30, 2009.
The insurance watchdog said that incorrect and misleading information would be punishable in the Insurance Act, 1938.