Sunday 5 July 2015

Letter addressed to IRDA CHAIRMAN by our Secretary General.

LIAFI-SG/IRDA-058/15 02 July 2015                                              Registered Letter With Ack. Due      
              
Shri. T.S. Vijayan,
Chairman, IRDA
3rd Floor, Parisrama Bhavan,
Basheer Bagh
HYDERABAD 500 004


Dear Sir,
Sub: Non implantation of The Gazette of India Dated 18-02-2013 and IRDA
Circular No: IRDA/ACT/CIR/PRD/089/03/2013-14 Dated 21-03-2014-Reg.
We requested the Management of LIC to implement the above two circulars several times. In all
our informal meetings this has become a regular point in the agenda. Every time they promise to
implement but never implemented. We held discussions with them again on 25-06-2015. They are
trying to convince us not to insist on its implementation. As representatives of LIC Agents it is our
responsibility to press for its implementation for the overall benefit of all Agents.
1. The Gazette of India Dated 18-02-2013 IRDA Notification: IRDA notified in Chapter
VI, 21 a. Commission or remuneration any in form to be paid to Agents. We requested
LIC to implement this Gazette immediately from the date of its issue. The Management was
saying that since all Plans are being closed by December 2013 and this aspect will be taken
care while New Plans are introduced from January 2014. We trusted LIC. New Plans were
introduced but the commission structure is not taken care of. The LIC wantonly avoided
implementation of first year commission rate but retained 2 & 3 years and subsequent
years’ commission because the IRDA recommended a lesser commission rate in 2 & 3 year
and subsequent years’ commission for few policies when compared to Closed Policies. We
herewith enclose a comparative chart indicating injustice done to Agents. By any means we
are entitled to get 35% commission from 12 years term.
2. IRDA Circular No: IRDA/ACT/CIR/PRD/089/03/2013-14 Dated 21-03-2014;
This circular pertains to advance payment of premium. The Management is faltering
implementation which does not have any financial implication. The Policyholder will be
benefited by this Circular. In fact we request you to permit the Policyholder to remit
advance premium for one year.
The LIC is neither implementing nor explaining the reasons for non-implementation. We request
you to exercise special interest in getting these Circulars implemented with retrospective
effect.
Thanking you,
Sincerely yours,
For Life Insurance Agents Federation of India
Sd.
Secretary General

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