IMFs will also market products of capital, banking, postal services, pension funds in addition to insurance services: IRDA

Guidelines On Cards For Increased Insurance Commissions For Agents

Insurance Regulatory & Development Authority (IRDA) on Wednesday announced that the proposed Insurance Marketing Firms (IMF) will have legal sanctions to undertake multi level tasks of not only selling off various non-life insurance products but also multiple instruments belonging to capital market, mutual funds, pension funds as well products of postal departments.

The Authority's Member (Non-Life) Mr. M Ramaprasad while presiding over an Interactive Session on Insurance Marketing Firms under aegis of PHD Chamber of Commerce and Industry here today in which IRDA's Sr. joint Director, Mr. Randip Singh Jagpal was also present, however, also disclosed that fresh guidelines were in offing to hike the commissions and remunerations for insurance agents including brokers.

This, according to him would amount to encouraging the interest and keenness of insurance agents and other such functionaries to deepen and widen the penetration of insurance in semi-urban and rural pockets in which non-life insurance is virtually non- existent.

The concurrence of Securities & Exchange Board of India (SEBI), the RBI, the Pension Fund Regulatory & Development Authority and that of postal departments have been obtained to enable the insurance marketing firms to perform the multiple tasks as defined, besides selling of the insurance portfolios and products to the masses, indicated Mr. Ramaprasad.

However, he clarified that each IMF's would have to sell off 50 per cent of insurance products, especially in the non-life segment of their total sales volumes so that the desired objective of enlarging the marketing of insurance products to the countryside and even in urban pockets is attained.

According to him, 50,000 agents relating to servicing insurance sector including various other functionaries have been quitting their assignment every year in the absence of lucrative commissions and to restrict this exodus, fresh guidelines were on cards to increase the package of compensation.

Mr. Randip Singh Jagpal in his remarks, observed that the new guidelines and reformed approach of the IRDA would not only help to accelerate the share of insurance premium in the country but also extend this facility to every nook and corner of India. The IRDA guidelines in context of IMF were explained in details by Mr. Jagpal.

Vice President of the Chamber Mr. Gopal S Jiwarajka and Chairman including Co-Chairman of Insurance Committee of PHD Chamber Mr. Yogesh Lohiya & Mr. S K Sethi also spoke on the occasion complimenting the IRDA for its renewed approach to liberate the insurance industry. A handy 'information manual' was unveiled at the event which can act as a handy guide and reference tool.

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