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LIFE insurance industry paid Rs 10,954 crore in commission to insurance agents in nine months during April-December 2010 period. Total commission paid to agents fell to 5.88 per cent of the total premium collected as compared to 6.41 per cent in the same period last year, according to Life Insurance Council,an industry body of life insurance companies in India. Total premium, which includes new business as well as renewal premium, collected by life insurance industry in the April-December 2010 was Rs 1,86,285 crore.
Post new unit-linked insurance
plans (Ulip) regulations effective from September 1, 2010, life insurance industry has been struggling as the sales have fallen sharply. The new business premium income of the life insurance industry fell by 20 per cent in December compared to the year before.
In the October-December 2010 quarter, total commission paid to agents was Rs 4,142 crore compared to Rs 4,198 crore in the same period previous year, as per Life Insurance Council data. Industry players say commission paid has dropped as a result of cap on charges in unit-linked policies levied by the Insurance Regulatory and Development Authority (Irda) in September 2010.
SB Mathur, secretary general, Life In
surance Council, said, "Commission payout has fallen due to changes in the regulations. First Irda capped charges levied in Ulip in October 2009. Then it came out with new regulations in September 2010. Ulips have been in controversy for the last two years. Full year's impact of the charge cap would be felt in the last quarter of 2010-11 and next year."
Source :- mydigitalfc
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