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


rate of commissions to the agents should be in the range of 2% to 4% for entire term of the policyowner.
6) To encourage the full-time and regular insurance agents they ought to be paid trail commissions on the Assets under Management on regular basis at definite percentage say @ 0.5% yearly, on the total Assets under Management on every month basis, to meet the agency expenses.
7) The insurance business brought in by the outgoing agents should be transferred to such full-time insurance agents who will provide after sales services to the existing customers and they ought to get renewal commissions for their services and it should also be treated as part of Asset Under Management for calculation of trail commissions.