IRDAI provides insurers with a combined exposure draft on EoM.

Based on the advice of the Regulation Review Committee (RRC), IRDAI has produced an exposure draft on the Expenses of Management (EoM) that includes a commission for both life and non-life insurance businesses.

Rather than keeping distinct regulations for the commission and EOM, the RRC suggested combining both into one.

IRDAI has instructed the Councils to form an RRC with members from all stakeholder groups in order to improve business ease and streamline regulations by shifting to a principles-based framework for increased efficacy.

After removing three different regulations, the RRC suggested the IRDAI (EoM, including commission, of insurers) Regulations 2023.

The following three regulations have been repealed: Insurance Regulatory and Development Authority of India (Payment of Commission) Regulations, 2023; Insurance Regulatory and Development Authority of India (EoM of Insurers transacting Life Insurance Business) Regulations, 2023; and Insurance Regulatory and Development Authority of India (EoM of Insurers transacting General or Health Insurance Business) Regulations, 2023.

The exposure draft has maintained and is still proposing an EoM cap of thirty percent for general insurers and thirty-five percent for standalone health insurers.

As stated in the draft, life insurers are not allowed to spend more than 5% of all single premiums collected in a given year on plans that offer immediate or delayed annuities, and 10% of all single premiums received in a given year on group pure risk policies.