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Monday, November 24, 2014

IRDA in favour of increasing agent remuneration

The Insurance Regulatory and Development Authority (IRDA) is in favour of giving insurers a free hand in paying out agency commission to make it more remunerative for individual agents.

Speaking at an insurance summit organised by FICCI, IRDA Chairman T S Vijayan said insurance companies should protect agents by fixing minimum wages for them and creating employment opportunities in the industry. He said there should be some minimum protection for agents and they should be in a position to earn at least Rs. 10,000 a month from selling insurance.

"I hope that freedom is given to companies in the insurance bill. We can fix a cap on expenses and the insurers can decide on the best way to remunerate the agents. We feel that there should be a cap on the overall charges that a policyholder is subject to and if a company wants to pay a higher commission from its shareholders' account, it should be free to do so," said Vijayan.

On the benefit of raising foreign direct investment to 49 per cent, Vijayan said allowing 26 per cent FDI was a great success as it has helped the insurance industry increase insurance penetration. He also said the current legal and regulatory framework was adequate to ensure that the management of insurance companies was in Indian hands.

Vijayan also called for a ‘Jan Bima Yojana’ by the Government, on the lines of the ‘Jan Dhan Yojana' to increase insurance awareness.

Source : Thehindubusinessline


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