The insurance regulator has ruled out any increase in the first-year commission rates payable to agents above the existing 40 per cent cap.
This follows the high lapse ratios on account of attrition in the agency force. Insurance Regulatory and Development Authority (Irda) chairman N Rangachary failed to see how enhancement in commissions would help develop the Indian insurance market.
He further warned companies that some are under watch in terms of their hiding expenses under certain heads.