Life insurers ask Irdai to rework expense cap rules
The insurers have proposed that a fixed base cost of up to ₹100 crore—the cost of running an insurance business—be allowed outside the EoM framework, according to people. Expenses above that base could then be subject to the EoM caps, they said.
“Is there a basic cost to run an organisation? For example, everything is not linked to business,” the executive said. “Today the EoM is, if you sell ₹100 worth of premium, you will get something to spend. For businesses which are scaling up, how will they get there?”
