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Insurance Insurers to take a call on payment of commission on orphan policies

Insurers to take a call on payment of commission on orphan policies

Now, agents who have left the insurance companies may not get trail commissions.
Team Cafemutual Jun 28, 2018

IRDAI has amended the insurance bill 2015 in which it has clarified that insurance companies will have to take a call on payment of trail commission on orphan life insurance policies on their discretion.

So far, life insurance companies have paid trail commission to agents even if they left the company. With this amendment, insurance agents who have left the insurance companies may not receive trial commission.

This is also applicable for hereditary commission. Life insurance companies disburse hereditary commission to the nominee of the deceased agent.

Currently, IRDAI has capped trail commission at 7.5% of the annual report.

 

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1 Comment
Anil Modi · 1 day ago
This is just ridiculous. Why should any one do any business which is long term. When the insurers keep getting premium denial of commission to the agent is unjust and tantamounts to usurping the rightly earned income of the agents. I strongly recommend that even terminal benefits should be made available if we are build a strong working force. One must appreciate that having agents to work already saves the insurers from a lot of other burdensome expense that they have to incur on having permanent employees.
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