IRDA asks insurers for info on commission paid to banks

NEW DELHI: Sectoral watchdog IRDA on Thursday asked insurance companies to provide information on commission paid to the banks for selling policies in the last three and a half years.

"All insurers are hereby advised to furnish the information ... for the years 2006-07, 2007-08, 2008-09 and first half year of 2009-10 within 30 days," IRDA said in a circular to all insurers.

IRDA has prescribed the format for collecting information on the business generated through Bancassurance model and the payouts to the Bancassurance channel.

Bancassurance or the bank insurance model (BIM) is the term used to describe the partnership between a bank and an insurance company whereby the insurance company uses the bank sales channel to sell insurance products.

The regulator further said, in future the information in the prescribed formats should be submitted to IRDA on half yearly basis within 45 days from the end of the half year.

"(The) circular comes into immediate effect," IRDA added.