The Insurance RegulatoryDevelopment Authority (IRDA) has framed guidelines for life insurance products to be sold through common service centres (CSCs).
The products to be marketed through the common service centre distribution model shall be separately pre-fixed with the word CSC to clearly distinguish these products as exclusive CSC products while filing for the product approvals, the regulator said in a communication to the life insurers.
The maximum commission in the first year (at the time the product is sold) should not be more than 5 per cent of the premium paid in the first year.
“There shall not be any commission payable from the second year onwards and also on the top-up premiums,’’ the circular said. The service charges shall be a fixed amount for every activity that would be undertaken, it added.