ICICI Lombard General Insurance has issued guidance to customers and agents regarding health insurance coverage levels. According to reports from Business Standard, the insurer stated that given the rising cost of healthcare and inflationary nature of treatment costs, customers and channel partners should opt for higher sum insured amounts to provide adequate protection and health insurance coverage. The insurer emphasized that while it urges and advises customers and agents to opt for higher coverage amounts, the decision on the final sum insured rests entirely with the customers. As per the latest company response, the advisory comes in response to queries about whether the company had decided not to pay commission to agents on the renewal of health insurance policies with a sum insured below ₹ 10 lakh.
The advisory comes amid reports of potential changes to agent commission structures. As reported by Business Standard, the insurer clarified that it had not issued any statement or communication centrally with respect to agent commissions or payouts. The company stated that the communication highlighted in LinkedIn posts and screenshots was incomplete, factually inaccurate and quoted out of context. According to internal communications, a company official had written that no renewal payout would be applicable on health insurance renewal policies with a sum insured below ₹ 10 lakh. The insurer has now officially confirmed that it has not made any such decision regarding commission changes for policies with lower sum insured amounts.
ICICI Lombard emphasized that its commission structures remain compliant with regulatory guidelines. According to the company's statement to Business Standard, its commission structures are in accordance with, and compliant with, guidelines stipulated by the regulator and compensate agents for their efforts through commission structures that ensure fairness, transparency, compliance and efficiency in the distribution process. The insurer stated that it thereby compensates agent efforts through commission structures that ensure fairness, transparency, compliance and efficiency in the distribution process.
