New Delhi47 minutes ago
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Life and health insurance can become cheaper because IRDAI, the body that oversees insurance, is preparing to change the rules for selling insurance.
IRDAI has released a report on 23 September. In this, it has been proposed to implement new rules to reduce the expenses of the companies, to clearly disclose the commission of agents and to stop mis-selling i.e. selling policies by giving wrong information.
These new rules will have direct benefits and impact on your pocket, choosing the right policy and the entire way of buying insurance.
Preparation to reduce expenses of companies by 12.5%
- Life Insurance: The government has made a new rule that companies will reduce their expenses to 15% in the next 2 years and 12.5% in the next 5 years.
- Health and Auto Insurance: Companies will reduce their expenses from 30% to 20% in the next 5 years.
- Benefit to customer: Due to reduction in expenses of companies, the prices of policies will reduce and savings schemes will get higher returns.
The agent will have to give information about the commission he receives.
Now you will clearly know how much commission the agent or bank is getting for selling your policy.
According to the new rule, companies will have to give complete information about commission in simple language, so that the customer knows how much of the money given by him is going into the agent’s pocket.
Three rules to prevent mis-selling
- Agent identity will be added: The ID of the agent or employee selling it will be recorded on the policy paper. Also, the complete data of which company is selling false policies and how many are mis-selling will also be made public to the general public.
- Commission will be withdrawn: If it is proved that the agent or the bank has sold you the policy by lying or giving wrong information, then the company will take back the commission paid from them.
- Target and reward restrictions: There will be a ban on the rewards and targets given to employees of banks and companies for forcibly selling more and more policies.
Bima Sugam will make digital service and claims easier
- Insurance Facilitation: This will be a new digital platform of the government, through which customers will be able to compare policies of different companies sitting at home.
- Claim Easy: Through this, shifting (porting) the policy from one company to another and getting the claim money will become much faster and easier than before.
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