8) The trail commission is need because at present in Unit Link Insurance Designs policies are having surrender value of 96% after payment of 3 years premium and lots of customers opt for non paying the future premiums.
9) There ought to be restriction on the expense ratio of the Insurance Companies on the basis of their fund size.
10) The other charges like policyowner administration charges, fund management charges should also be identical for all the companies.
11) It will encourage healthy competition among the Insurance companies and skill of the
IRDA New Guidelines For Life Insurance Agents (4)
3) I suggest that for all the regular premium insurance policies of all insurance companies the charges should be distinctive. As in the case of Mutual Fund (it is 2.25% entry load - if invested through the distributor).
4) The rate of commissions to the agents should also be distinctive in all insurance companies.
5) I suggest that charges should be divided over the period of time depending on the length of policyowner. The charges should not be over 3% to 5% on yearly basis and
4) The rate of commissions to the agents should also be distinctive in all insurance companies.
5) I suggest that charges should be divided over the period of time depending on the length of policyowner. The charges should not be over 3% to 5% on yearly basis and
IRDA New Guidelines For Life Insurance Agents (3)
In the interest of active Insurance Agents for any life insurance company I make following further suggestions in this regards:
1) As regards to recovery of commissions on the first years commissions paid the agents, in case of laps of insurance owner in 2nd year due to no payment of renewal premium will generate lot of problems for the insurance companies, because there is high percentage of agents quits after introducing 1 to 5 policies, they get paid their commissions immediately. Then it will be headache for the Insurance companies to recover the commission from such agents who have already quit their agency business. It will ultimately reflect on the performance of the company & regular premium paying
1) As regards to recovery of commissions on the first years commissions paid the agents, in case of laps of insurance owner in 2nd year due to no payment of renewal premium will generate lot of problems for the insurance companies, because there is high percentage of agents quits after introducing 1 to 5 policies, they get paid their commissions immediately. Then it will be headache for the Insurance companies to recover the commission from such agents who have already quit their agency business. It will ultimately reflect on the performance of the company & regular premium paying