Stories
Big Relief for Insurance Customers! IRDAI Proposes 5 New Rules, See What Will Change
- •IRDAI has proposed new changes for insurance companies and distributors to make information easily available and control sales-related expenses.
- •Insurance companies are targeted to reduce their Expense of Management (EoM): life insurers to 15% in 2 years and 12.5% in 5 years; general insurers to 25% in 2 years and 20% in 5 years.
- •Proposal to reduce commission on new policies and renewals in health insurance, with some distributor channels seeing 15% on new policies and 5% on renewals.
- •Customers can view policy information (premiums, features) on insurance websites without providing personal details like name, mobile number, or email.
- •IRDAI proposes to ban 'dark patterns' on websites and make claim settlement records and complaint management information easily comparable for informed decisions.
Key Questions Answered
IRDAI proposed lowering the Expense of Management (EoM) for life insurance companies to 15% within two years and 12.5% within five years, while general insurers must reach 25% in two years and 20% in five years. Additionally, commission limits on health, term, and motor third-party insurance are proposed to be reduced.
Under the proposed rules, customers can view policy prices, features, and performance without providing personal details like names, mobile numbers, or email addresses, effectively banning forced data-collection methods known as dark patterns.
Yes, IRDAI proposed making claim settlement records and condition management histories easily accessible in a simple, comparative format so customers can evaluate various companies and policies in one place.
