IRDAI introduces direct plans in insurance

Not a welcome move, what is the purpose, in what way it is going to benefit the client ? in order to bring transparency and benefit to clients there is no need of introducing direct plans. They can order insurance co to make a plan which is transparent just like mutual fund statements. Here what will happen is direct plans will cost lesser, client will call the agent, understand from him about the details of the policy and will take the policy directly. It is going to create confusion only. Client will start comparing with direct plans and the efforts put in by agent to source the policy will go waste. Alternatively they can introduce different plans with limited benefits in direct plans.
IRDA has to look into mis-selling by agents along with their development / sales managers, as to reach targets the sales / development managers encourage agents to mis-sell, also most of the times it is the sales manager who accompanies the agent on a call and the complete call is handled by sales manager. Agent is a mute spectator. Some times the sales manager encourages to pay back the commission to the client in order to close the deal. Such practices have to be monitored.
Every agent before becoming an agent has to write IRDA IC 33 exam. Most of the companies do not have trainers to train the agent on IC 33 syllabus, hence they give question papers in order to save time and get passing marks. Agent does not understand the complexities of the industry, the terminologies. Mean while the agent along with the manager start sourcing the policies from agents natural market and waits for the licence. once the licence is issued all the policies sourced are logged in at once and the company celebrates the big day or highest policies in day one contest. What is the use of such kind of sourcing. Since agent does not know the ABC of any plans, he goes out of industry in couple of months, once his natural market exhaust. And the cycle continues. More than 80% of the agents vanish in first 6 months, out of rest 20 % another 10 % vanish in a year, as all are working part time. the rest 10 % are full time agents who survive on commission thru their sincere efforts.
There are so many practices followed by agent, sales manager and the company knows it but they keep mum as they are getting business, if customer comes to the office to complain, the whole blame is passed on to the agent alone, as his code is mentioned.
I request IRDA to first come out with some solutions to curb such kind of practices and make the industry clean. Then think of direct plans.

Why don't IRDA and SEBI asks agent to surrender their agency code and say them to look for other alternatives for their bread and butter. They have eye only on agent income but don't want to reduce employee income even employee gets increments and incentives many other things year by year. But only agent is the target to reduce the cost of insurance and mutual funds.
They don't give value to the efforts we made in sales.

DIRECT HEALTH INSURANCE PLANS ARE GOOD BECAUSE IT WILL IMPROVE OPPORTUNITIES FOR LAWYERS AS DISPUTES WILL INCREASE MULTIFOLD. I THINK IF AN AGENT IS NOT CAPABLE OF UNDERSTANDING AN INSURANCE POLICY'S TERMINOLOGIES THEN HOW WILL THE CUSTOMER UNDERSTAND. THAT'S WHY DISPUTES WILL RISE MULTIFOLD. MY SUGGESTION TO IRDA IS TO ALLOW AGENTS TO DEMAND FOR SERVICE CHARGES , SO THAT AGENTS COULD HELP INDUSTRY IN SOLVING THESE DISPUTES.

brokers have an edge by presenting more options from many companies. agents being captive can only market for one company. unqualified, unprofessional, ignorant they are like the disappearing tribals. to survive they must work for brokers or look for some other job

Will it stop LIC to use words like SIIP (sounds similar to Mutual Fund's SIP)? No, Direct Plans is only half done, Insurance Companies and IRDA itself is a bigger culprit.
They should make the policy document simple and standard which could be easily understood by the client. They should stop selling with profit Insurance policy and Return of Premium plans. Only Pure Term insurance should be the policy which insurers should be allowed to sell.

Insurance Regulator must also focus on close scrutiny of expenses and wasteful expenditures incurred by Management. A Direct Say of Agents/Advisors must also be given by IRDAI to be heard as Realistic Feedback from the Frontline Warriors of Insurance on regular basis thereby providing them an equal opportunity to share, discuss and express their Real Difficulties being faced while Prospecting, Solicitating and Servicing their Esteemed Customers!
A Round The Clock proper Grievance Redressal Machanism must also be put in place by IRDAI for redressal of grievances of Agents/Advisors CLIAs.

A much-awaited welcome move by IRDA. With Insurance companies launching diversified products to woo Customers, transparency is lacking in terms of overall charges and not only commissions paid to Agents/Brokers. However, the endeavor to promote a Direct insurance policy should be to keep the wording/jargon legible for customers, benefits are easy to comprehend, etc. Otherwise, it may be appealing to a wide section of cost-conscious customers, especially millennials but eventually would not go far in spreading the real benefit.

While this seems to be a welcome step, I am skeptical of the manner in which it is implemented. IRDAI has not specified that Direct - Regular = Agent's commission. So, the Insurance companies might launch direct plans with 1-2% lower premium without transparently declaring the expenses.
Anyway, even a small step is welcome.

Launching Direct Plans will benefit customers. But before launching and implementing direct plans, Irda Must also keep Agents commission in mind as many solely depend on it .

Much appreciated move by IRDAI , This initiative definitely helps penetration of insurance in a right way .

Launching Direct Plans will benefit customers. But before launching and implementing direct plans, Irda Must also keep Agents commission in mind as many solely depend on it .

I think, the coming time for advisors in each set of Financial instrument, is getting more tough. We have to think on this.

every new company which starts in indian market first relies on advisor channel and once the acceptance of the brand and products is achieved, then they find alternate and direct channels to hit the advisors. its better if IRDA asks every new insurance company to sell direct plans at first and then market their products thru advisors. this might help in giving a clear picture about the "advisor" role in the insurance market

Yes, this is good news for both customers and insurance companies. Who will look after a customer who chooses a direct plan after a period of uncertainty? Even now, approximately 25% of investors are unclaimed, and their families are not receiving benefits. If you do not use a mediator as a customer, you are likely to encounter numerous issues. Please reconsider, and successful life insurance business only intermediaries.