Irdai proposes limits on expenses of management of life insurers

Insurance regulator releases exposure draft aiming to provide greater flexibility to insurers as far as their corporate agency tie-ups are concerned

The insurance regulator has proposed to put limits on expenses of management (EoM) of life insurers, wherein they have said that the expenses of the companies should not exceed an amount computed on the basis of percentages in respect of various segments of business written during a financial year.

In an exposure draft, the regulator said life insurers should not spend an amount exceeding 5 per cent of all single premiums received during the year on policies granting immediate annuity, deferred annuity; 10 per cent of all single premiums received during the year on group pure risk policies and individual