Scrap agent fees on financial products, says Swarup panel
BS Reporter / Mumbai Sep 03, 2009, 00:42 IST
Draft report wants commissions phased out by 2011
To stop financial products from being mis-sold, a government-appointed committee has proposed the phased elimination of upfront commission paid to agents by April 2011. The recommendation covers all retail financial products and affects 3 million agents that are serving 188 million investors.
The move will be of special significance for the insurance industry since mutual funds and the New Pension Scheme are already no-load products. “Insurance policies need to remove the bias towards selling the policy with the highest commission,” the committee headed by Pension Fund Regulatory and Development Authority Chairman D Swarup said in the draft report released for comments today.
The government had appointed a six-member committee to give recommendations on investor awareness and protection. It included officials from the ministries of finance and corporate affairs, Reserve Bank of India, Insurance Regulatory and Development Authority and Securities and Exchange Board of India.
The report takes cues from recent steps in developed markets like the UK, where all products will be no-load from 2012. Australia favours the fee-for model over the commission-based model.
The committee has said the upfront commissions embedded in the premium paid be reduced to no more than 15 per cent of the premium immediately from the current 16.25 per cent. In 2010, this should be brought down to 7 per cent and a zero-commission structure should be in place by April 2011.
“The interim period should be used by insurance companies to help their agents make the transition to a more mature way of selling and advising,” the report said.
In the case of mutual funds, last month Sebi did away with the levy of entry and exit loads. Instead, fund houses are now incentivising agents by paying an upfront fee from their pocket and a trail commission of 0.5 per cent of the investment amount. The trail commission is expected to encourage investors to stay in a scheme for a longer duration. The average duration, even for an equity scheme, is around 12 months.
Similarly, under the New Pension Scheme, no commission is paid to either the fund manager or the point of presence (PoP), the point of interface with the subscriber. Instead, a fund management fee is paid to the fund manager, a transaction charge is paid to the PoP and the central record-keeping agency.
Insurance companies, however, declined to comment on the suggestions saying that they were trying to understand the implications.
The committee has also proposed the establishment of a Financial Well-Being Board of India (FINWEB). The proposed entity will regulate agents and will focus on financial literacy of the population at large.
FINWEB will have two operational arms. The Self Regulatory Organisation (SRO) will work on bringing financial advisers under one common standard. This arm will, however, have powers to penalise erring market participants, including the ability to revoke licence and initiate criminal action. The Financial Literacy Cell will work on making Indians financially literate.
“FINWEB should be a participative organisation, with representatives from government ministries and departments, regulators, industry associations, financial organisations active in the field of financial literacy and investor protection,” said the report.
Among FINWEB’s functions are preparing a disclosure template that will show the outcome of financial product and costs and risks associated with it. The disclosure will also include the income — direct or indirect — that an adviser would earn from the sale and maintenance of the product, both from consumers and from product manufacturers.
The committee recommended that the sales process should be documented and customer profiling will be made mandatory before an adviser sells the product.
“There should be a common minimum entry barrier for all financial advisers,” it suggested. If implemented, an agent will need to clear a common examination pattern before he can sell financial products to retail consumers. The existing examinations in mutual funds, insurance and others will continue as different modules within the outcome-specific goals of FINWEB.
It also proposed to bring in licences for advisers to operate and also they should be registered with FINWEB. “For a serious breach of trust, the adviser or adviser firm will face a loss of licence to do business,” the report said.
go back swaroop commission.investment sardar Ashish Dandekar
just like go back simon.we will fight or we will end
Posted by: alfred
September 28 , 2010, 13:22 IST
Why don't you reduce the salaryof government employee and employees of Insurance company ? An small insurance agent generally bleads and seats to earn a living. You very well know behind curtains what happens to the income earned. 70% percent of the income is spent on traelling, servicing the customer and and so-called agents commission which goes back to the insured person. These so called government employees and policy makers earn a fat salary. Where is the P.F., gratuity, telephone, childrens education, self development and myriad other facilities for a poor housewife who somehow manages both ends meet.
I feel that the recommendations the committee have made are worth implementing. Investors should be made aware and the entry barrier to financial advisory as a profession should be leveraged. May be proper training in financial planning through professional courses like Certified Financial Planner or CPA should be made mandatory for working as an financial advisor. This would enable the advisors to charge advisory fee directly to the client. And clients would also feel secured while handing over their hard earned money in the hands of a learned and knowledgable person. The major Insurance companies and AMCs should sponsor some amount of these professional financial planning course fees. This move would definitely defragment the system to a better functioning model.
dear Mr.Swarup,
i really appreciate your move in sugesting ways to correct what is happening with the insurance industry but simply removing commission can never be the solution instead the word commission can be changed to advisors' service charges (like s.tax@10.3%) which must be uniform throughought inustry and must be linked to the sum assured rather than premium to promote our goal of security.Hierarchies in companies to reduce cost,confirmation cals should be made to customers about terms of policy rather than getting Illustration signed, heavy surrender charges to be removed and trail incomes to be paid to motivate long term investment,dicrimination in terms of single and regular modes to be reduced in terms of commission can be steps to name a few.
Posted by: Iyyer
March 19 , 2010, 15:36 IST
these can be rational solution in corecting the things
Mr.Swarup,the whole Idea emerges form the customer point ,but do you really think that by the process will help customer to go for right product or for no product at all.Please think that insurable population are still not insured so looking into the economic senario where India is still lacking in social security ,this kind of move is not justified.It will be better if we can distribute the comission payable to an agent within 5 years from the date of inception of a policy apart from the renewal comission.Secondly please find out the actual cause of misselling ....
I Feel Mr Swaroop Got the answer till now , Even I feel should Govt not use our hard earned Money in this Scrap. Sitting in the Free AC Room and Drafting Rubbish Doesnt cost Brain and Money,walk on field and atleast convince a Common Man for Insurance will make You Realise.// Or it is A STUNT for PUBLICITY like RAKHI SAWANT or people like THAT
Mr Swarup u shuld take in considerations both the sides; The way that u r using is absolutely wrong and instead of solving the situation, u r increasing the problems. Jst dont take salary of one month and spend ur month and then u will realise what u r doing to 3 million agents as well as there families. So plz stop this. U r simply pushing millions of life in well. Jst think once more!!! Plzzz!!! Hope u will understand.
NO commission ok then no bussiness,then how corporation,will give salary to the employees?i think corporation getting money thru products,products will say thru agents only...y the hell they nowadays coporation giving advertisement like 'contact licindia.com' instead of contact ur agents...how we survive now?swarup will take care of the all agents families? will he
1927 : go back simon commission
2009 : go back swaroop commission
Insurance agents will make the same situation of D. Swaroop as the freedom fighters made for simon commission but will not accept such a nonsense of this mad man named D.swaroop who has no knowledge how the insurance industry works in this country. i know some changes are needed for the betterment of industry like training of agents and controlling the bad and wrong selling but this idea is going to do nothing but ruin the whole insurance industry of india with career sabotage of lakhs of agent, food problem of crores of there dependents and lapsation of 25 crore policies in lack of policy servicing.
By accepting this commitees report INSURANCE industry in india is going to end. if government want to make benefit of consumers then government has to do this in every field not only in insurance.
Mr.Swarup,there are so may law which are misused so shall we scrap all the laws,and become a lawless society.Your idea is like that only because some mis-selling has taken place you want to scrap the commission.Have you ever worked without salary,now even after retirement you work and get compensation but you want to scrap hard working agents commission.Leave IRDA to decide about this.For the govt., this report is not worth the paper on which it is writen(typed).
Hello Mr. Swarup sir, You are enjoying all the benefits from GOVERNMENT in AC room with good Monetary Benefit. But you are kicking on stomachs of lakhs of Insurance Consultants and their families with your ideas. Also you have given idea to KILL Insurance Industry and so the Safety of Common Man. Just come out of AC room and try to sell INSURANCE policies in INDIA for one year and give service to the customers without any commission and then give this kind of nonsense report.Then only you can feel the pain and dfficulty of this field.So please stop these rules otherwise a lot of agents will against you. And you will be .............
Hellow Mr Swaroop ,
Have u ever worked as insuranec agent or u have simply took the hot seat and drafted the notorious bill that will be suicidal to million of agents who are the pillers of Insuranece business in India .Try to be practical..Man.
What right u have to play with the fate of million of agents and their family.Don't u feel that u r actually killing the agents life by slow poison.
LIAFI zindabd
this is not correct, the indians 70% of people uneducate in take insurance policy need us, so total spoil lic ,,,,,,,save lic and protect lic from swarup&co
as an un wanted comittee chairmen u r acting too smart, do u know how many poor people passes away with out insurance in this country. don't u have the minimum common sense that you sent such absurd recommendations? when u spend huge amounts of public money on making this nonsensical report dnt u evn feel ashamed?
how money have you got for making this nonsense report? first you go in the market sell insurance without money and without your gov salary and try to save your family.after that make report.you mental dont know anything about insurance
This is my request to all the LIC agent of this country to show what we do for this industry and acording to me the best way to show this by not giving any buisness to LIC until they come out with a clear picture.
LONG LIVE LIC AGENT OF INDIA.
Thank you
My question to anybody who knows the answer, by when we will come to know the exact imlication of this report so called swarrop.If any honourable LIC AGENT union leader listening to me.I would reqest him to dispalay the role of an LIC agent by peaceful strike, strike means no buisness to LIC until the result of this report is declared.
Hi Mr Swaroop.
Do you what is the persent of indian population is insured. All policy's will come through insurance agents and corporate agents seller, if you stop the seller of corporate the mis selling will stop maximum. work on that.
Mr. Swaroop Has done a great work with his report.In india insurance product are sold as per the need of agent and not as per need of clients. People are this move will kill insurance indusrty, which i biased this move will help common man to get good and real insurance product like term plan and he will be free to make good investment in mutual funds or any other product.Now days ulip are sold with high percent in all other insurance product which shows that how our agent brothers are concerned with benefit of clients. If they really want that common people in india should have insurence then they should sell him term plan.In free market no one is allowed to gets his bread and butter at the cost of someone else.Govt should go ahead with Swaroop report with some changes that will help agents community but surly not at the cost of clients.
Posted by: ravikoodly
February 02 , 2010, 19:47 IST
dear jadhav,
pls take up insurance agency and get survive for atleast 5 years and then post ur comment.
Posted by: bipin
October 12 , 2009, 20:35 IST
hey,mr try to work without salary? and becopme a full time agent without any commision,then you speak about the report?what do you think about yourself? i dont think so you must be knowing something about insurance.
Hello Mr. Swarup sir,
You are enjoying all the benefits from GOVERNMENT in AC room with good Monetary Benefit. But you are kicking on stomachs of lakhs of Insurance Consultants and their families with your ideas. Also you have given idea to KILL Insurance Industry and so the Safety of Common Man. Just come out of AC room and try to sell INSURANCE policies in INDIA for one year and give service to the customers without any commission and then give this kind of nonsense report.Then only you can feel the pain and dfficulty of this field.
Dear swaroop jee,
We opposing your suggestions. Financial companies carries lots of employees who is no proper knowledge in financial products. This community is also with LIC of India. So please reduce the salary of that employees first. Then you committe members please work without salary.We challenge you committee members please SELL any one policy to your friend / relatives and feel the difficulties. Agency business is a profession like Doctors/Engineers. You all making these type of recommendation from AC rooms. Please come out to market...... then give recommendations to Govt. Behalf of Bharathiya Life Insurance Agents Sangh-Trivandrum we oppose your recommendations and we will fight for the justice.
Posted by: ss
December 15 , 2009, 16:31 IST
this is correct, mr.swarup is not having any experince of insurance policies business, so he want to know about all types of insurance policies and the benefits of insurance in Indian public, because our indian publics always moving difficulties and their most of families depent on insurance. so as per the running agents business is very systematically running for our country,
save LIC and save LIC staff and Officers etc., WITHOUT THE ROLE OF AGENTS HOW CAN YOU SAVE LIC AND OTHERS? UNITY IS STRENGTH. Dear agent friends, we are in the position of DO OR DIE. S.MADAVAN,PEELAMEDU.
THIS IS NOT FARE. HOW CAN YOU EXPECT THAT AGENT COULD SERVE THE PEOPLE
WITHOUT ANY COMMISSION/REMUNERATION. SO THIS IS OUR KIND REQUEST YOU PLEASE STOP THIS-kamlesh, ranchi
HEY MR,R U READY TO WORK WITHOUT SALARY?THEN WE WILL ACCEPT UR SUGGESTION.JST WORK ONE MONTH WITHOUT SALARY...DONT GIVE A HASTY SUGGESTION SIMPLY SITTING IN THE A/C CABIN OK..JST COME OUT TO THE FIELD AND SPEAK ALL SUCH NOSENSE.. ON BEHALF OF LIAFI,AVINASHI ROAD BRANCH,COIMBATORE.
Posted by: lalitha
October 20 , 2009, 20:28 IST
dear jayaa,i v shudnt decide this with few agents ma..yes,our LIAFI organisation educating us and giving training ya..v shud decide this with genuine agest..u know how v suffering for renewals..clients giving renewals atonce?tell..ok well, u r ready to accept this i hope...but our family is running our life with LIC only..:(..The one only person u,telling like and asking like this i think...
Posted by: JAYAA
October 10 , 2009, 21:22 IST
DEAR LALITHA YOUR ANGRY IS QUITE GENUINE.. BUT THE SAME TIME CAN YOU ASSURE ALL OUR AGENTS ARE WELL QUALIFIED IN FINANICIAL PLANNING.? ARE THEY HAVE COMPLETE KNOWLEDGE IN INSURANCE SELING AS WELL..?
PL SHOW SOME INTEREST IN THESE ARES TOO.. ALSO INSIST YOUR ORGANISATION,TO EDUCATE AND TRAIN UR INSURANCE ADVISIORS IN A BETTER WAY,THEY ARE SIMPLY TAMING YOU PEOPLE AND FORCE TO SELL THE INSURANCE PRODUCTS FOR THEIR[COMPANIES'] NEED, FOR SURE.
Mr. Swaroop Your report show that you are think one side only. Insurance sales is not like a bank deposit or mutual funds . its involved so may servcing aspect. first you come into the market and sell a policy then you will realise the fact. hence I suggest you to dont implement such hasty decisions. save india.
IT IS OFTEN SAYS THAT "AGENTS ARE THE BACKBONE OF INSURANCE" MR.SWARUP HOW WITH A BROKEN BACKBONE LIC WIL STAND? IF INDUSTRY DOES NOT EXIST IMAGINE WHAT WILL BE THE SITUATION OF LACS OF EMPOLOYEES AND THEIR FAMILY MAMBERS ATTACHED TO THIS INDUSTRY?
Mr.D.Swarup I have shocked to see your report about scrap commission of insurance agents. I am a LIC policy holder since last 16 years and still I have 9 LIC policies, in this 16 years I have taken several benefit from it without going to LIC office for a single day, that is only because of my LIC advisor. I have no any lookout what commissions he received from LIC against my policies, but one thing I can say that how one could serve the people without any remuneration. So this is my kind request to you please stop this nonsense tasks and save the policy holder as well as save the nation.
Mr.Sawrup you should be aware of the fact that,ours is a country where unemployment is a serious issue.A huse number of educated unemployed make ther livelyhood by way of commission from this profession. Elemination of commission is a bolt from the blue to the agent community and their family members.We shall resist implimentation of the Swarup panel in lieu of our blood.
sorry i hasitate to take u r name or type it, wht the hell is going on, why u want to scrap agents commission, its more than 50 yrs plus lic started n nw u want to scrap, how much bribe u have collected for this report, plz show u r brains in catching the terrorits who attacked indian people, not on the agents who insure those people. if at all god is there this will never happen u r report will b scarped frm the parliament. mr P M and mr finance minister if u pass this bill, defently in the next election u will lose u r votes, 100% guranteed.
Dear, Mr. Dhirendra Swarup, LIC OF INDIA is world's largest Insurance Co. with 25.78CR customers, 2048 branches, 807sa'ellite office, 114.916 employees, 13 Lakhs Agents. Is your intention the promotion of equity market at the cost of LIC OF INDIA and All THE COMMON INDIAN? IT is fact that every action that have some opposite reaction. Mr.H'ble P.M & F.M are you both ready to accept THESE NUC'S! REACTION?
Mr.swarup I am very sorry to give this comment,I think you are working without taking salary,but weather you impresed by taking advisory fees under the table for giving such a report, by way of hitting on the stomuchs of real workers who work onbehalf of poor famaly members of the policy holder,on happining event.This is very very bad on your part, be as an agent for 3 months and take experience then you submit this report to Govt of india.
I want to suggest D swarup that if they stop the commission of agent befor this they have to stop the salary of govt employees and also the member of d swarup committe when the govt implemrnt 6th pay commission the salary of all govt employed is incerssed,every year da is incressed but our commission is same since 1956 why ! . Inflation effect only govt employees and politicion not to insurance agent becasue insurance agent is hard woarking. Befor stoping the commission of agent thing about the family of agent.other wise
Mr. Swarup do you work without your salary or do you suggest others to do so???? Then why are you taking the initiative to stop others income who are working hard & honestly in this industry... We dont need an Economist or Analyst to draw the inference once the said bill is approved in the parliament, even a school boy would know the after effects. Grow up... or else take my suggestion - go to school everyday with or without your grandchildren, it reveals you might have bunked lots of classes in your childhood.
look "Mr!!!!!!!!!!!!!!!! we dont want to you to give this suggestion(stop the commission) to the govt.before giving this suggession,at first you
be an agent then you realised how an AGENT EARN HIS COMMISSION."
AND then suggest anything about an agent's income.and one more thing
can you work without salary and your compensation
Posted by: GSRAWAT
September 29 , 2009, 20:30 IST
As India's insurance market without commission no one will be work and industry will go down, millions of people will unemployed its encrouge crime so Mr. D you need to think about it again.
I request Indian Govt to impliment this as early as possible. As I want to see downfall of every Life Insurance compony as soon as possible.
Posted by: REAL-INDIAN
October 03 , 2009, 20:21 IST
Mr. sdg.. you might be a permanant resident of MENTAL HOSPITAL as your opinion shows you are a person with no brain or a dead brain..Get good treatment from MENTAL hospital and dont let those doctors to become MENTALS like you..
Posted by: INDIAN
October 02 , 2009, 22:10 IST
Why you want to see the downfall of life insurance companies? Are you giving your comments from MENTAL HOSPITAL Mr.SDQ ?
This is worst suggestion.we are indians. weare travelling on a bycycle to sell insurance about 25kms/day. if you want to stop our bread thanks . pl recommend govt topay compensation every month asin Brittan for jobless agents .God only can save us
Being the President of General Insurance Agent's Organisation of India I strongly protest recommendation of Swarup Committee which has many worst effect on the agency profession as well as economy of our country.
MR. SWAROOP
ARE U A FOREIGNER OR INDIAN I AM DOUBTFUL. THE BLOOD OF FOREIGNER IS RUNNING IN YOUR BODY THAT'S WHY YOU ARE GIVING EXAMPLES OF FOREIGN COUNTRIES. MR. SWAROOP U BORN IN INDIA. PLEASE REMEMBER THAT YOU ARE INDIAN AND DON'T GIVE EXAMPLE OF FOREIGN COUNTRIES. IT IS PROVED THAT U ARE FOREIGNER'S AGENT AND ABOLISHING INSURANCE AGENT'S COMMISSION.
DK
Agents are serving the policyholder till end of their life, then why u are going to clinch away the bread and butter of their families in their old age. Its a fundamental right given by the constitution to earn the livelihood in this country. Your report to scrap commission is nothing but attack on fundamental right of indian citizen. We are already in worry as orphan policyholders are increasing day by day due to termination of agents and your report is helping in increasing more orphan policyholders by huge termination of agents in future.
Please re-think by putting yourself in place of those needy and greedy common people and agents and think with humanity ground.
i surprised that in all our lic meeting all executives often saying that lic agents are pillar of lic. but now they committee recomented scrap of agents commission so that means what would be lic position (without pillar). so kindly do not recoment such a idea. save lic, agents and country...
Mr. Swarup,
why you supervise agent only, same recommendations should be for politician & local MLA's also,becoz they also misutilize a lots of financial prodoucts(Public Money) more than insurance agent in INDIA.
i THINK scrap must be in administration first
mr swroop are you take a risponsiblity of widow or family when her husband died without insurance ?mutual fund & insurance Quiet difrent . mutualfund is buy & insurance is sold.your ripot is one sided plese give suggestion for survive of insurance compny . you are chairman of pension fund how many person is taking your schem without any advaisor .I am very sorry to say you are the chairman of flop schem
Mr. Swaroop, You are also an Advisor for the Government, Right ? If you will not be paid a single peny OR If you will not ask a Single peny (Both : Above table & Below Table) for the advices you've given, than I sware, no agent will ask for the commission. May I know that how much incentive (NICHE KI KAMAI) you've been paid for your dirty mind ?
mr. swroop are you a indian citizen ? I think you aren't. GOVT Empolyees has got Pay commission, D.A., incriment, and back door income, facilaties. why your committee not collect these data , and compare the agents income with these. How much general public suffer by these govt employees & politician .
GOOD. FIRSTLY OUR'S IS NOT A DEVELOPED ECONOMY. THE COMMITTEE SHOULD KNOW THE AWARENESS LEVEL OF OUR MASSES, LEAVE ALONE THEIR BASIC UNDERSTANDING OF FINANCIAL PRODUCTS. TO HELP SAVE PUSHING IS NECESSARY, MORE SO IN COAXING OUR PEOPLE PICK UP INSURANCE PRODUCTS, WHICH HAPPEN TO PROTECT FAMILIES TO FALL BELOW THE LEVELS OF THE STANDARDS IF THE BREAD WINNER IS NOT THERE. THE COMMITTEE HAS TO GO THROUGH ALL THESE STATISTICS TO ARRIVE AT THESE CONCLUSIONS THAT AN AVERAGE LOW MIDDLE CLASS PERSON WILL TO TO BUY THIS DIRECTLY. NO CHANCE IN 98%. MAYBE NOT EVEN IN PENSION PLANS TILL IT IS MADE COMPULSORY- ONLY GOVERNMENT EMPLOYEES. THIS THE COMMITTEE PROBABLY KNOWS.
Mr. Swarup, You fergot one important suggession ie Govt should make life insurance compulsary for every citizen in the range of 10 to 25 times of his annual gross income depending on his age, just like vehicle insurance. Pl include this in suggessions and then keep your paper for cunsultation & public openions. If Indian public agrees, only then you may scrap agents' fee.
If u can not change the system. accept as it is. Mutual fund upfront commission is banned. it was 2.25%. they do not accept cash. pan card was compulsary untill now. Let's stopourselves be the agent of the mutual fund or insurance company. Let's be an agent of our investors. Hence demand as much commission u want from investor and be paid by them. this is a process and may take years to materialise. But that is the only way out for mass panitration in long run.
after all rom was not built in a years time.
Only one thing is OK that is set up a pay commission to increase the salary of Govt employees on every year.ismay kisi ka koi golti nehi hain baki aam admi ko berozgar bana deo.If this bill pass in parliament then in 2014 general election congress party will take place in the page of history books.
Mr. Swarup is very correct. How can LIC agents and Financial Advisors earn COMMISSION. It is the birth right of Politicians, MPs, MLAs, Ministers and their chelas the Bureaucrats. They ONLY are entitled, to EARN Commissions under or over the table, whether it is defence or civil contract. If every one starts earning commission, then the world will come to an end. Amen.
Mr. Swarup advocates a common minimum standard for the Financial Advisors. Welcome.Does he have a Common Mimimum Standard and Qualification for the Politicians who purport to rule, but ruin this country. He is afterall a member appointed by these unqualified peoples' representatives, dancing to their tunes. What qualifications and market experience, Mr. Swarup and his panelists have to recommend such stupid measures like scraping agents' fees. Will they want us to be on Govt's dole? Who will compensate for our efforts and time. They are saying that UK did away with agents' fees. Still they ape what the British do, after 60+ years of Independence. They would have made/want to make a juant to western countries to study their system at tax payers' money.
the suggestions by d. swaroop com. to scrap agents commission by 2011,is a misfortunate one.this can be a result of ignoring of agents role or need of knowledge about it.a suggestion for commitee members "try to make people insured as an agent,& know how tough it is.
Insurance is not bought, it is sold. It is not a visible product which can be sold easily in the market. Due to renewal commission the agent keeps contact with the policy holders and takes care of his policies. This also helps him to bring new business from the policy holder.If renewal commission stops, he will lose contact with his policy holders and will not take interest in giving them service. As a result he will lose new buisness. Nowhere in the history , it is heard that a customer comes on his own to buy insurance in the office nor he is aware about it. It is the agent who takes a major part to provoke him to buy insurance for the sake of security for his family.Therefore it is not advisable to stop renewal commission. This will also affect the insurance industry.
I am of the opinion that swaroop committee ve not done their homework while preparing report.This report lacks common sense,proper understanding of life insurance salesmanship, ground realities of insurance selling. This shows how our govt. is working.Are they really serious about well being of the country& countrymen, how is such a group appointed by them? with whom loyalty of govt is with? May god help govt and so called comittee.
I can not accept the suggestion of "Swarup Committee"-to stop/reduce agents commission from 2011. Because I think this suggestion help to ruin Insurance Industry, so many agents and their family & side by side future provision of so many policy holders.
The move is not practically possible. In rural & deep rural areas an Agent has to convince hard to buy an insurance to protect his family in the event of something unfortunate. If commission is stopped agent may not go to to tap these areas.
THIS REPORT WE CAN SAY THE WORST REPORT GIVEN IN INDIA FOR THE LAST FEW DECADES, THIS IS LIKE "WORK WITHOUT SALARY" IS IT POSSIBLE. THIS DECISSION CREATE PROBLEM IN FUTURE. INSURACE POLICY IS RUNNING WITH THE HELP OF AGENT. MORE PARTIES TOTALLY DEPEND ON AGENT IF AGENT PICK UP THE PREMIUM THEN IT HAS DEPOSIT OTHERWISE NO DEPOSIT IN OFFICE IF THERE IS NO BENEFIT OF AGENT THEN YOU CAN IMAGINE WHAT HAS HAPPEN TO POLICY. SO THE DECISSION OF COMMISSION IS WORTHLESS
Though I don't support the elimination of commissions, but there definitely is a need for:
1. Reduction in commissions
2. Making a central body to supervise the market behaviour of the agents (as already suggested). This central body should exercise strict control over the activities of agents. Activities like misselling of policies and false promises to policy owners should be dealt very strictly with.
Mr D SWAROOP SIR,PL U TELL US HAVE U INSUERED YOURSELF ND UR FAMILY MEMBERS WITH UR OWN STUDY AND CALCULATIONS WITH IMIDDIATE ACTION? DO U REQUIRE ANY HELP OR SUGGESTION ND MOTIVATION BY ANY INSURENCE AGENT. IF YES,.. ND THIS IS UR SITIUATION, THEN WHAT IS ABOUT THE FAR UNKNOWN PERSON FROM REMOT INDIA.SIR,U R
GOING TO DESTROY THE SOCIAL SECURITY SERVICE WITH UR SUGGESTIONS.
I vehemently object the suggestions of “Swarup Committee” to stop/reduce Agents Commission. The aforesaid suggestions of the “Swarup Committee” shall ruin the Insurance Industry as well as almost 14 lakh Agents and their members of the family will be in distressed condition, and as such the GDP rate & Inflation Rate of the Indian Economy shall be affected and the numbers of BPL would be raised rapidly.
Under this circumstances to kindly restrain from implementation of the aforesaid suggestions of “Swarup Committee”.
this report we can say the worst report given in India for the last few decades,this is like 'instead of treating wound..cutting or removing the total leg/hand'.Committee members not considered the big rural and underinsured market of India.Not paying commission to Agents.......is a small problem to agents they can divert to some other profession for their survival,but who will take care about crores of uninsured/underisnured Indian people.the situation in India which the committee seeing will not happen for the next ten years.so by simply sitting in AC rooms recommending is not good....otherwise Indian society will face so many social problems due to underinsured/uninsured deaths.
Posted by: NIRANJAN
September 09 , 2009, 23:06 IST
THIS IS A VEY BAD RECOMMENDATION.THE KNOWLEDGE IS NOTHING ABOUT SERVICE OF AN AGENT.IF AN AGENT STOP TO GIVE SERVICE THEN ABOVE 90% POLICY WILL LAPSED OUT.I AM SURE INSURANCE INDUSTRY WILL COLLAPSED .
thanx for suggestion to reduce commission so please provide us job not 1 for 3millian Agent I work for lic from last 3yrs & mutual Fund also my age is 28 how u can provide us job in this rescission . if u failed to give jobs do 1 thing we stand in que & u can shot us
life insurance is only sell in india. if insurance agents commision is stop insurance industries is go to loss and all companies have closed.all agent stop the work and all existiting policies are lapse without after sales services.one man of whole insurance industries not go to sawrup panel report.lapsation is not important cause of misselling . in india life insurance is not give most priority.insurance is ast priority in life.if any financial problem person stop premium paying so policy has lapsed
insurance selling is a very tough work.in the world no man work without money why lic agent sell policy without commision. 100% buisness coming from thru insurance agent.main reson of misselling of policies is big target to complete within time. if govt want misselling of insurance policies to stop minimum buisness gurantee and compititions..
1)Commossion is basically offered by insurer not demanded by any one. Thats why people approached to become insurance agent. It is not fair to scrap it. 2)Pl imagine if an agent offers his full commission as discount to policy holder at commencement of policy, how many persons will approach to him for buying insurance policy. 3)How many people including committee members and their families are adequately insured about 20 times of yearly income. Were they willingly approached to insurance compony for policy. pl think on these and many other such points before ??????
Recommendations are prejudiced.Not suitable in India.As Life Insurance is intangible and it is subject matter of solicitation ,It is not sold sitting in office.
In this present condition even with commoission still 2% having adequte insurance,Then without commission how can we protect indian family.This is totaly propergana to disturb LIC some top exucutive wants to make LIC like BSNL..Save LIC should be main Agenda..
no agent will advice without commission.insurance is a social security tool.it is sold not purchased.to ban commission is a danger for social security.instead of promoting it we are making fun of it.how many people purchase insurance themself,is this data is studied.to procure insurance is difficult task and can not be understood by sitting in AC rooms
crazy.... How can anybody Think like this ,That an Indian Who does not want to buy Insurance without Heavy Persuasion will Give fees like Doctor,Advocate,Engg,I.Tax (C.A) where Need is unavoidable in Required Situation....
THE SIMPLE MAJORITY TO ONE PARTY CONGRESS GOVT HAS NOW BECOME A LIABILITY TO OUR COUNTRY....
IF U SAY"THIS IS PRO PEOPLE DECISION" I SAY" 2 WRONGS DON'T MAKE A RIGHT ?
EVEN IF GOVT GIVES A PROPOSALS TO PAY " ZERO SALARY" TO GOVT EMPLOYEES ,I BET IT WILL B A MORE POPULAR DECISION OR
BAJAJ AUTO TO SELL BIKE COST & CHARGE FEES FOR SELLING?
PEOPLE WILL STILL LIKE IT ?
MAD GOVT ...GONE CRAZY
Sir/Madam,
For insuring an agent gets commission only & nothing more ! That is reward for his work.Here Insurance coverage is still less compared to developed countries.Now by 0% commission an agent has to move some other area to look is bread.So totally it adversely affects Indian insurance field and common man.
Govt has to appoint committees to 1) control corruption,2)lower govt cost etc so that country is benefited.
Philosophers die treacherous death. Those(including Mr Swarup) who oppose agent commission should tell their own amount of insurance? Are they wise (financially literate)enough to buy insurance 100-150 times of their annual income. Then let us consider if all Indian population is lierate enough to buy most needed insurance. Thanks to LIC agents who have insured 25 crore population. And supported Indian economy with 8 lakh crores of saving. Insurance is still push market and agents and commission are must to promote insurance. The academic advice of scraping commission is worthless. Those who feel envied should think practically and insure himself first. Pliz acknowledge agents services instead of having envy.
Posted by: janrao
December 17 , 2009, 21:37 IST
mr swaroop pl come with me in rural and remote area and sale a policy without commission.and recover advisory fees from investor
Posted by: Anil
September 09 , 2009, 10:53 IST
Agents are misselling insurence for commison. Agreed people should be insured for financial security but how much of so called insurance are insurance. ULIPS (85 % of todays so called insurance) are sold which are not really insurance product(investment). My agent missold me a ULIP of 50000 and tool cool commision of 20000 just with 20 min of selling dreams.
I was a fool to accept him. Go to any now knowledgable fin adviser , he will never suggest any ULIP. If yoo want inv than go for term life and mutual fund.
This move was long over due. The insurance industry has fleeced many people of their hard earned money in the name of commissions and that too for selling the wrong products to the customers. Glad to see that authorities have woken up now and hope to see an end of every tom, dick and harry being a financial advisor.
Posted by: choudhary
September 12 , 2009, 22:00 IST
dear mk, every one is entitled to make his money grow. pl do not take anyones's advise. all knowledge is available in all media forms. butt people like us are not so fortunate to understand these ,therefore have to depend on someone, even if the advice was wrong still i got 20%,not a bigdeal, but still greatfull for his ill advise. so go ahead and do a better deal yourself and get the best out of it, more is available if one has the capability. pms also charge people for growing their money, your choice.
Posted by: urAdvisor
September 10 , 2009, 19:21 IST
if u r a Indian Try first a practice of a insurance agent in insurace field then advice pepole ur skills about selling insurace policy..........then Geneous advisor...................if u can proof i challange
Posted by: Shreepal.S.Kothari
September 08 , 2009, 22:51 IST
Better dont Comment or ur Agent will stop serving u
Posted by: manny
September 08 , 2009, 14:56 IST
Dear Alok,
I guess you need to know that the insurance subsidiaries of private banks and brokers are separate entities. The insurance revenue does NOT go to the parent bank.
Posted by: Prashant
September 07 , 2009, 22:05 IST
hello u r from which field ?
u can also do 1 think do not pay consultant fee to Dr Loyer
Posted by: sss
September 07 , 2009, 21:16 IST
Hey you! Are you ready to work without salary?
Posted by: Alok
September 03 , 2009, 13:52 IST
this move will bring along a huge cost restructuring amongst private banks/brokers as their basis of survival is insurance revenue
Content Guide
Draft report wants commissions phased out by 2011
