sanjib addy (DivisionalManager) 03 April 2011

Insrance Brokeragage-IRDA Regulation

Dear Sirs,

General Insurance Companies are allowe to pay 17.5% Brokerage on amount of Premium procured throug Broker as per IRDA( Brokers) Regulation. Now in cases of Public Sector Units who call for Tenders for insuring their assets etc can brokerage be paid on the to any Broker???

Thanks

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2 Replies

S. K. Pandey (CHIEF EXECUTIVE) 04 April 2011

Dear Sir,

IRDA as well as Government of India have restricted payment of Brokerage &/or Commission against Government &/or Public Sector insurance business. Thus tenders can be submitted as Direct Quote of the company showing net of brokerage.

S. K. Pandey,

Sanidhya Consultants,

Varanasi – 221 005

sanjib addy (DivisionalManager) 04 April 2011

Dear Sir,

If a quote net of Brokerage is submitted then can Brokerage be paid by a Insurer? Does the Insurer require a Mandate from the PSU / Government Undertaking? Can you please let me know the IRDA circular no/ Order in this Regard.

Thanks