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Trichy, Tamil Nadu, India
Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN. Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. Also functioning as an office bearer of AIIEA Thanjavur Division.

Friday, December 11, 2009

Insurance agents to stage dharna

Press Trust of India / New Delhi December 10, 2009, 18:55 IST

About 25 lakh life insurance agents would stage a dharna tomorrow at Jantar Mantar in Delhi to oppose the recommendations of a government appointed panel on elimination of upfront commission paid to advisers.
"The protest would be against Swarup Committee Report that threatens to end the very existence of insurance agents in the country," Life Insurance Agents' Federation of India President H M Jain told reporters here.
"Implementation of the recommendation will make the role of 25 lakh life insurance agents working with LIC and private insurers redundant and adversely affect crores of people who are dependent on them," he said.
The Committee on Investor Awareness and Protection, headed by interim PFRDA Chairman D Swarup, in its consultation paper had proposed elimination of upfront commission paid to insurance agents by April 2011.
"Immediately the upfront commissions embedded in the premium paid (to agents by insurance companies) be cut to not more than 15 per cent of the premium. This should fall to 7 per cent in 2010 and become nil by April 2011," a consultation paper prepared by the committee had said.
In a country like India insurance is not bought but it is sold, Jain said, adding that the elimination of commission would hurt the industry and starve the nation of long-term capital for development.
(Courtesy:Business Standard)

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