How much discount I can expect from my LIC agent?
I have come to know from one of my friend that he got 25% of the premium for his first LIC premium.
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How much discount I can expect from my LIC agent?
I have come to know from one of my friend that he got 25% of the premium for his first LIC premium.
Discounts or Sharing of Commission from Agent is illegal in India under Section 41 of Insurance Act 1938 . This is quoted on each life insurance proposal form available in India. So its illegal.
Asking for rebate,taking rebate or giving rebate is illegal as per Section 41 of Insurance Act. Please read the complete provision in detail -Quote:
Originally Posted by >take
Prohibition of Rebates (Section 41 of INSURANCE ACT ,1938) :
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy nor shall any person taking out or renewing or continuing a policy accept any rebate except such rebates as may be allowed in accordance with the published prospectuses or tables of the insurer provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taking out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
(2) Any person making default in complying with the provision of this Section shall be punishable with a fine, which may extend to 500 rupees.