Irdai hikes agent payouts

The writer does not know that it is not just government security bundled with insurance. There are various benefits depending on the plan one selects and the needs of all can not be fulfilled by just term plan. Income of everyone is not so high that they all will get term in the first place. People don't like to manage many things when it comes to finance also. They are not comfortabke with slightest of volatility.secondly not everyone are in the best of their health that they will and can get a term plan. It is not that just because you want you will get insurance. Secondly it takes an agent atleast 3 months to get 1 policy and atleast 10 follow ups. After selling a policy agent needs to serve the customer for 16 different services including most important which is claim. Also if the claim gets rejected for any reason we wouldbright with the company and get them their right which is a claim. In mutual fund only 1 form to be filled and submitted. For claims a good amount of follow up is required. If documents are incomplete we have to visit customer for some 3 times.If additional docum3nts required we again have to go to the customer to get them.

It is just fitted in the minds of people that agents are paid for nothing. Writer should become an agent to understand what we do and how difficult it is. Nowadays online has become a way of buying the policies. Well when a claim.comes you should know and ask people who have suffered on how difficult it becomes for the families to get claims from the companies. Agents are paid for the comfort of the family if the insured dies. In case if and companies generally reject claims of online plans, who do they go to?

Our work is even more noble than a doctor. It has been fitted in the minds of people that we are villains but the truth is we are heroes and people who post us as villains are real villians because companies just want to save cost of commission and they help them to earn more by showing us as villians.

How much does a salaried person earn? Average if 6 lacks a month. They don't have to serve their customers at 11.00pm in the night or 7.00am in the morning. If by these new commission structure we have to get a premium of 1300000/- to make that kind of money to feed our family. Previously it was 2000000/-. Now in tulips the commission is only 4% and 35% was the highest we could get. Not all traditional policies would give so much commissions. If the products were not good than why would IRDA pass them same if closed ended funds are not good why would SEBI pass them?

I agree few agents are notorious but they are very few and far in between. Which also is in mutual fund industry including RIAs as well. So please don't blame one community just because you are taught what is completely untrue.

Brokers and banks are the biggest miss-sellers who should not be allowed to sell these products. There should be a ban on them to sell third party products including mutual funds. Even Raghuram Rajan mentioned it.

Lastly insurance agents have to earn for their family as well. Atleast we earn by doing something noble and not by duping people like banks and brokers. Only charges if a product should never matter but how that product benefits a customer should matter. That is where you people including SEBI is going wrong. You only chase returns which is wrong. Benefits are more important at times than returns.