LIC pays Agents; Pvt pay Banks!

In 2008-09, private insurers forked out Rs 205.42 crore as
commission for banassurance, while the payout by LIC for this
distribution model was only Rs 0.12 crore.
The commission payout by private insurers for business written
through bancassurance in 2007-08 was Rs 202.22 crore as against Rs
0.16 crore by LIC. The insurance sector was thrown open for private
participation in 2000.
LIC continues to heavily bet on its individual agents (not corporate
agency) for selling its products. The life insurance major’s
commission payout to individual agents during 2008-09 stood at Rs
10,029 crore, higher than the payout level of Rs 9,552.68 crore in
2007-08, the Lok Sabha was informed.
On the other hand, private insurers’ commission payout to individual
agents declined to Rs 2,649.85 crore in 2008-09 as against Rs
2,725.80 crore in the previous year. Private insurers’ commission
payout for corporate agency was Rs 1,768.64 crore in 2008-09 as
against Rs 1,536.94 crore in the previous year.
LIC’s commission payout under corporate agency stood at Rs 2.86
crore in 2008-09 as against Rs 12.22 crore in previous year.
-Businessline, 25.11.2009