IRDAI directs insurers to reduce premium in direct plans

I had requested for my mediclaim policy that it may be made direct at time of renewal which insurance Co did not do. Is this not violation of rule?

Most of the time we experience that customer buying policy directly repent later on when they move pillar to post for getting after sale services in the absence of an Experienced Agent!
And many a times they express their unhappiness and repentance of not utilising the experience and services of an experienced agent in selecting a better product!
The Importance of an experienced agent/advisor is very much important and can not be substituted. Don't mind paying little bit of commission for getting better and advantageous services of an experienced agent/advisor.

Most of the time we experience that customer buying policy directly repent later on when they move pillar to post for getting after sale services in the absence of an Experienced Agent!
And many a times they express their unhappiness and repentance of not utilising the experience and services of an experienced agent in selecting a better product!
The Importance of an experienced agent/advisor is very much important and can not be substituted. Don't mind paying little bit of commission for getting better and advantageous services of an experienced agent/advisor.

Why don't the Insurance Industry introduce concepts like Insurance Distributors (in line with Mutual Fund Distributors) instead of Agents and Insurance Brokers? In the financial landscape, the distinction between Mutual Fund Distributors (MFDs) and traditional agents or brokers is significant. The insurance industry should adopt an MFD-like concept instead of an Agent/Broker to distribute Insurance. Some points to show the difference between the services of MFDs and Agents are here :

👉 Scope of Services:

MFDs: These professionals facilitate the sale of mutual fund products across various Asset Management Companies (AMCs). They provide clients with access to a wide array of investment options.

Insurance Agents: In contrast, insurance agents typically represent a single Life or General Insurance Company. Their focus is limited to selling policies from that specific insurer.

👉 Client Perspective:

MFDs: Clients who engage with MFDs benefit from a broader spectrum of investment choices. MFDs can guide them through the entire mutual fund landscape.

Insurance Agents: While insurance agents play a crucial role, their offerings are confined to the products of a single insurance company. This model may not always align perfectly with the client’s best interests.

👉Agent Mobility:

Challenges for Insurance Agents: When an insurance agent transitions to another insurance company, existing clients may face disruptions. The agent’s departure can impact the continuity of service and personalized advice.

MFDs and Mutual Funds: In the mutual fund space, an MFD need not switch as it can work with multiple AMCs. Clients can continue their investment journey seamlessly, as MFDs operate across multiple AMCs. Moreover, even if an MFD has switched to another business, the clients are not affected and can service their investments online, through AMCs and RTAs. They may even take guidance from their erstwhile MFD or new MFDs.

👉 Comparing Services:

Mutual Fund AMCs vs. Insurance Companies: Clients often notice differences in service quality between Mutual Fund AMCs (or Registrar and Transfer Agents, RTAs) and insurance companies. While both sectors aim to serve investors, the level of service and transparency can vary.

In summary, the industry’s move toward MFDs-like Insurance Distributor aims to enhance investor choice, streamline services, and prioritize client welfare. However, ensuring consistent quality across all financial intermediaries remains a critical goal for investor protection.