Life health insurance policies could become cheaper:Plans to cut agents’ commissions

Life and health insurance policies could become cheaper, as the insurance regulator IRDAI is preparing to change the rules that govern selling of insurance plans. IRDAI released a report on 23 September. It proposes implementing new rules to reduce companies’ expenses, clearly disclose agents’ commissions and prevent mis-selling – selling policies by providing incorrect information. These new rules will directly affect your finances, your ability to choose the right policy and the entire process of buying insurance. Companies preparing to cut expenses by up to 12.5% Information about agent commissions will have to be disclosed You will now know exactly how much commission the agent or bank is receiving for selling your policy. Under the new rules, companies will have to provide complete information about commissions in simple language, so that customers know how much of the money they pay is going into the agent’s pocket. Three rules to prevent mis-selling Insurance Sugam will make digital services and claims easier