image

On E-Commerce Portals an insurance policy will be drafted soon by IRDAI

In a bid to expand the reach of insurance and promote financial inclusion, the Insurance Regulatory and Development Authority of India (Irdai) will soon come out with a draft exposure on e-commerce portals selling insurance policies. The regulator will also release norms on management expenses that an insurance company can charge on premuims.

An exposure draft will be made public soon. World over, commissions aren™t regulated; it™s only management expenses that are regulated. So, we have to look at whether there will be a ceiling on management expenses similar to mutual funds, or a threshold of commission.

Among other things, Irdai will take up the issue of tax imposed by the Centre on insurance products on maturity. As per Section 10 (10)D of Income Tax Act, insurers deduct TDS at 2% from maturity proceeds of a life policy if the premium paid is more than 10% of the sum assured. If the investor doesn™t have PAN, the rate goes up to 20%.

Six life insurance companies have approached the Foreign Investment Promotion Board (FIPB) to hike FDI to 49%.

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Leave a Reply

Your email address will not be published. Required fields are marked *

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Recent Articles

Recent Legal updates

Recent Gst Updates