Cap on dealer commissions unlikely to lead to change in premiums

General insurers, however, look to move towards risk-based pricing

With the Insurance and Regulatory Authority of India (Irdai) capping payments by insurance companies to auto dealers, general insurers might move towards risk-based pricing, say industry players. But, premiums may not be impacted by much. 

Guidelines on motor insurance service providers had brought auto dealers under their purview as motor insurance service providers (MISP) and had capped distribution fees payable to them at 22.5 per cent for two-wheelers and 19.5 per cent for four-wheelers and sports utility vehicles (SUVs). Earlier, insurance companies used to pay this distribution fees in the range of 25-30 per cent, across the segment. But,