New Delhi, Dec 11: Thousands of agents of the Life Insurance Agent's Federation of India on Friday staged a protest against the recommendations of the Pension Fund Regulatory and Development Authority (PFRDA) Chairman D. Swarup, in the national capital.
D. Swarup Committee's suggestion to the Government to make insurance a fees based profession instead of the current commission based did not go down well with the federation.
Addressing the media, Chairman of the federation, H.M. Jain, demanded that the Government should scrap the recommendation, as this will adversely affect the insurance profession in the country.
"He (D. Swarup) has suggested that commission should be deducted from premium and insurance should be made fees base. I think that insurance has not yet developed in India. Leave alone India, even in those countries where insurance is developed, this system hasn't been employed. In India we have just reached 12-15 percent of the insurable populace, from where we collect Rs. 2 lakh crore and hand it over to the Government," Jain said.
"If this is made fees base, then insurance, which has to be sold because nobody comes out to buy it, this profession will die. Together with this, those companies and all the money invested in country's development will go for a big loss," he added.
Jain also said that if benefiting the investors is what is driving the Government, then it can be achieved though cost reduction measures.
"If the Government and Swarup is serious that policy holder should be benefited then the payment should be made at the mortality. LIC (Life Insurance corporation) and private companies should reduce their expenses, increase the bonuses, include agents into servicing, so that the cost can be reduced and people will be benefited," Jain said.
Senior Samajwadi Party (SP) leader Ramgopal Yadav also attended the protest and assured the protesting agents that his party will make sure that the report will not get the support of the parliament.
"This will decide the fate of lakhs of people and the government is moving against them with this proposal. While foreign companies flourish, Bhartiya Jeevan Beema Nigam (Life Insurance Corporation of India), which has invested crores of wealth of the country in industries, the Government is intent on destroying it," Yadav said.
"We'll raise the issue in the parliament. I'll also speak to the Finance Minister and say that this report which is coming up against lakhs of people whichever committee has recommended it, this should not come in the parliament and neither should it be passed," he added.