Insurance Intermediation System In For An Upgrade
The Insurance Regulatory and Development Authority (Irda) is planning a scheme to bring credibility and professionalism into the insurance intermediation system.
A committee appointed by the authority to put forward suggestions to improve the system submitted its recommendations recently.
In the present system, life insurance agents show a tendency of neglecting their old clients and instead are focusing on new clients and business.
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This is because the new policies fetch them higher commission (in the first year) than the old ones. As a result, the lapse rate is growing, Irda chairman N Rangachary said.