Calcutta, Feb. 4: There’s some bad news for those general insurance companies which go out of their way to generate higher business volumes. The insurance regulator is keeping close tabs on them and probe into these erring companies may start within a week.
“We have received complaints that certain general insurance companies are giving additional incentives over and above the stipulated commission to its agents in order to get higher volumes of business. Based on these complaints we have decided to inspect the companies. The exercise will begin in another seven to 10 days,” N. Rangachary, chairman of the Insurance Regulatory Development Authority (IRDA), said here today.
The move will, however, not be restricted to general insurance companies. Any insurance company found violating the stipulated norms will be hauled up. Talking to newspersons, Rangachary said he had asked general insurance companies to bring down management expenses that include commissions and incentives paid to agents.
Rangachary was in the city to address a conference on insurance organised by the Bengal Chamber of Commerce and Industry.
Addressing the gathering, Rangachary said insurance companies should try to develop a quality market rather than a quantity market. According to the IRDA chief, the insurance industry is poised to grow at a rate of 13-14 per cent as against the current rate of nine per cent.