Insurers to stop giving high incentives to auto dealers: IRDA

India Infoline News Service | Mumbai |

In order to push sales of motor insurance policies, insurers pay huge incentives to the auto dealers

The Insurance Regulatory and Development Authority (Irda) on Monday has asked general insurance companies to cut the excess incentives which they are paying to motor dealers and to pass on the benefits to customers in the form of low premium on policies, according to a media report.

According to IRDA, general insurers are outsourcing a lot of their work relating to the motor insurance services from auto dealers, the report added.

In order to push sales of motor insurance policies, insurers pay huge incentives to the auto dealers. As a result, these policies become excessive and the end-consumer has to bear the cost.

The regulator recently met the chiefs of general insurance companies to discuss this issue.
 

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