Policy Changes
Insurers cut commissions as IRDAI caps rise in renewal premium for aged
This story was originally published at 22:38 IST on 15 April 2025
Register to read our real-time news.Informist, Tuesday, Apr. 15, 2025
By Kshipra Petkar
MUMBAI – Insurance companies have informed distributors that commissions on all retail or health policy renewals for people above 60 years will be cut to 10% from 15?rlier, according to documents reviewed by Informist. The changes are effective Tuesday, according to the documents.
Informist has reviewed letters by four health insurance companies – Care Health Insurance, ICICI Lombard General Insurance, Aditya Birla Health Insurance, and HDFC Ergo General Insurance – sent to advisors on Apr. 1.
"The decision (to cut commissions) aligns with regulatory guidance aimed at maintaining affordability for senior citizens while ensuring the long-term sustainability of their policies," according to the letter from Aditya Birla Health Insurance to its advisors.
The move follows the decision by the Insurance Regulatory and Development Authority of India to cap the increase in renewal premiums for senior citizens to 10% per annum. The regulator had in January asked insurers to cap the rate as there has been a steep increase in premiums for renewals of health insurance for senior citizens.
The IRDAI circular said that senior citizens have limited sources of income and are affected the most when there is a sharp rise in health insurance premiums. "This matter has been engaging the attention of IRDAI and is a regulatory concern," the circular had said. End
Edited by Saji George Titus
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