Expense Account, Mint
An increasingly consumer-focused insurance regulator pushed the envelope just a bit further last week. On 5 October, the insurance regulator asked SBI Life to refund Rs.84 crore to policy holders, you can read the order here:http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo1798&flag=1.
The Insurance Regulatory and Development Authority (Irda) rules for group insurance (notified in 2005) mandate that beyond the prescribed limits of commissions, there must be no other payments to agents (as management or documentation expenses, profit commissions or bulk discounts—words used by many insurance companies to pass over commissions in excess of limits) who are individuals or corporates. Irda has found SBI Life guilty of breaking this rule over a period November 2007 to August 2010 for paying its master policy holders (entities who buy the group cover) commission beyond what is allowed under various heads.