Section 26 in Insurance Regulatory and Development Authority of India (Insurance Brokers) Regulations, 2018
26. Remuneration and reward to be received by an Insurance Broker from an insurer.
(1)For Direct insurance business:(a)The payment of remuneration and/ or reward to an insurance broker by an insurer shall be as per IRDAI (Payment of commission or remuneration or reward to insurance agents and insurance intermediaries) Regulations, 2016 notified by the Authority in this behalf;Explanation: No remuneration or reward can be paid in respect of an insurance where agency commission is payable and likewise, no agency commission can be paid in respect of an insurance where remuneration is payable.(2)For reinsurance business?(a)as per market practices prevalent from time to time.(b)The settlement of accounts by insurers in respect of remuneration of insurance brokers shall be done on a monthly basis and it must be ensured that there is no cross settlement of outstanding balances.
