Raw deal for life insurance agents?

sbi life insurance agent

raw deal for life insurance agents. a very insightful article by mr ramakrishanan

The first year commission constitutes a major portion of agent’s income and about 50 per cent of it goes towards expenses for procuring the business.

The recent report of the Committee on Investor Awareness and Protection, headed by D. Swarup, Chairman, Pension Fund Regulatory and Development Authority, has rattled life insurance agents throughout the country.

The committee has recommended that instead of paying commission, insurance companies should ask their agents to charge their clients a fee for the advice given. This will lead to a cut-throat competition and end up in customers preferring agents charg ing the lowest fee over those capable of giving the best advice.

Sec. 41 of the Insurance Act prohibits an agent giving part of the commission to his client since such rebating will give r... http://go-travel.ucoz.com/news/sbi_life_insurance_agent/2013-06-16-3550