About LIC agent commissions post - please remove this post

[NewsDesk]

Hi,

I am a LIC agent.

your website is very useful for customers as well as Agents. Appreciate your work.

But one bad thing is in your forums people discuss about agents commission and discounts which is impacting all gents business in India and killing Agency model.

People reading this are getting educated about discounts and commissions. All my customers and almost all who want to buy policy are asking rebate/discount which is unethical practice as per LIC also. Due to this I am not able to earn my daily bread and not able to recover the efforts I have done and spent on appointments. Some customers ask 50% discount on first premium. to recover Agent has to pay premium from pocket to recover it in next 3-4 years and left with nothing. Because of this I am thinking of quitting this agency.

I request you, please remove the forum post and attachment in it about agent commissions.
http://www.policywala.com/forum/showthread.php/2174-How-much-commission-LIC-agent-gets-of-the-premium

Thanks for your support to discourage the bad practice of rebate and discount.

Regards,
Via email@ Rajesh A

[NewsDesk]

Dear Rajesh,

Thanks for writing to us. Please see our answers to the points raised by you -

Point 1:
The info shared about LIC Agency commission (as per your link) on the PW Forum is legitimate as per the current IRDA Regulation.
As per "Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000" (Source -
http://irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo57&flag=1&mid=Insurance), every agent has to disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect. [see point 8 (d) of "Code of Conduct" for reference - "disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect;"]

Point 2:
We always speak against "Prohibition of Rebates", as it is against the law as per "Section 41 of INSURANCE ACT, 1938". You can find no of threads on PW Forum. One Thread Link from the PW forum -
http://www.policywala.com/forum/showthread.php/763-How-much-discount-I-can-expect-from-my-LIC-agent

If you have any query, do ask in the policywala forum.

Thanks,
PolicyWala Team