Irdai proposes single limit on expenses for non-life insurance firms

The Insurance Regulatory and Development Authority of India (Irdai) has proposed a single limit for the expenses of general and health insurance firms. This move is expected to bring relief to non-life insurers, especially private players.

According to the exposure draft released by the regulator, non-life insurers cannot spend an amount exceeding 30 per cent of the gross premium written as company expense during a financial year. 

Currently, insurance companies have to comply with business line specific limits. And, the regulator is seeking to discontinue the practice of segmental compliance of company expense and its reporting.

Company expenses would include