The contentious proposal of mandatory disclosure of commissions on insurance policy documents is expected to be shelved.

The insurance industry regulator had been holding discussions with the insurance companies on the proposal that aims to further strengthen transparency among policy buyers and insurers, particularly on the pricing front.

However, insurance intermediaries, including agents and brokers, have voiced concerns about the proposed disclosure in the policy document as it could result in discontent among buyers — both individual and corporate — and discourage insurance agents, thus impacting business negatively.

IRDAI had said in July that the authority will only take a decision after holding extensive consultations with all the stakeholders. The regulator has since proposed changes to the commission structure.

Dematerialisation

The regulator has also mandated the dematerialisation of new insurance policies following a meeting with the CEOs of insurance companies.

“Over the last few years, Insurance Repositories (IRs) have helped in electronic issuance, storage and services for over 10 million insured persons,” said Vijay Gupta, senior vice-president, NSDL Database Management Limited.

An insurance repository maintains an electronic insurance account (EIA) of the insured and all insurance policies can be stored and accessed via this EIA facility.