%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(61).png "IRDAI Revised its Guidelines on Commission on Long-term Motor Insurance")
- Here are the key changes:
- Commission Structure:
- Previously, insurers offered a first-year commission of up to 17.5% on five-year comprehensive motor insurance policies for two-wheelers.
- The commission structure then decreased to 10% in the second and third years, and further reduced to 5% in the fourth and fifth years.
- For three-year comprehensive motor insurance policies for four-wheelers, the commission cap was set at 15% for the first year, 10% for the second year, and 5% for the third year.
- Updated Regulation:
- The recent change aligns long-term policies with the standard one-year motor insurance policies.
- Insurers are now permitted to provide commissions within the expense management framework for long-term policies.
- Flexibility for Insurers:
- The new guidelines grant insurers the freedom to tailor commission structures according to their management expenses.
- IRDAI aims to facilitate ease of doing business, promote innovation, and enable quicker responses to emerging market needs.
Question:
1 According to the updated regulations of IRDAI, how are long-term motor insurance policies now aligned?
- A) With health insurance policies
- B) With travel insurance policies
- C) With standard one-year motor insurance policies
- D) With life insurance policies
