LETTER TO PRIME MINISTER,FINANCE MINSTER AND CHAIRMAN, LIC OF INDIA.

                

LIFE INSURANCE AGENTS’ FEDERATION OF INDIA

(Regn No.2924 of 2000)

DEMANDS BY LIAFI TO  GOVT.

1. Restore – Section 44 of Insurance Act  1938  (HRC and ERC Commission).

2. Remove – Service Tax on Premium.

3. Remove –  TDS on LIC Policy maturity.

4. Bonus is grtually decreasing.Policyholders are suspecting foul play as per media reports. So we demand audit by CAG for investment made by LIC from the year 2008 onwards.

DEMANDS BY LIAFI TO  LIC

1. Increase Bonus to policy holder.

2. Increase  Gratuity  for agents to 10,00,000/-.

3. Increase   Group Insurance for Agents  between 500000/- to 2500000/-.

4. Business holiday for club member till wide range of new plan are introduced.

5. Implement the recommendation of IRDA (Gazette dated – 18.02.2013 for Commission).

6. Empower the empowered   agents to support the policy holder servicing.

7. Incentive to direct and Career agents.

8. Amend   Agent’s Regulation – 1972 in favor of agent and  do justice.

9. Introdue   conveyance allowance   to CLIA .Detachment of agent should be optional.

10. Increase mediclaim to club members and cover family members.

11. Restart dialoge with LIAFI at all levels in shape of ICC meeting.

12. Improve in quality of services to policyholders.

13. Remove esclalation clause on club membership.

14. Stop  five  star  culture and stop wasteful expenses.

15. Install   CC  camera  in all offices incldg. branches.

16. Honour democratic values and stop humilation to  agents at all levels.

17. Remove minimum net no. of lives condition from club rules.

18. Introduce various types of new plans in sufficient no.s.

19. Stop misuse of termination clause and take actions against those who are misusing.

Name of Agent                          Signature               Agency code          Branch                           Division                        

-------------------------------------------------------------------------------------------------------------Dear agents friends,

Kindly sent the above letter to the address given below:

Letter To,

1.   Prime Minister:   Hon’ble Narendra Modi Ji,South Block,Raisina Hills,New Delhi-110001.

2.   Finance Minister :  Hon’ble Arun Jaitely Ji, 134,North Bloack,New Delhi-110001

3.   Chairman,LICI :  Hon’ble Chairman,LIC of India,Yogakshema,JB Marg,Mumbai-400021.

All agents are requested to send it with out fail.

POSTED BY   SECRETARY,LIAFI,COIMBATORE DIVISION ON 29/01/2015 AT 8.50AM

IRDA CAUTIONS PUBLIC AGAINST SPURIOUS CALLS AND FICTITIOUS OFFERS

Agitation -GOBI BRANCH AND BHAVANI BRANCH -NEWS ON 22.01.2015

LIAFI-Secretary Generals letter

INSURANCE AGENTS COMMISSION NORMS TO BE REVISITED

Saturday, 17 January 2015

INSURANCE AGENTS COMMISSION NORMS TO BE REVISITED

Insurance Agent Commission Norms To Be Revisited

On January 14, 2015

The Insurance Laws (Amendment) ordinance has omitted section 40A of the erstwhile Act. This means, the Insurance Regulatory and Development Authority of India (IRDAI) has to work on a revised commission structure where the existing norms will be revisited.

Section 40A of the erstwhile Insurance Act pertained to limitation of expenditure on commission. According to erstwhile Insurance Act, no insurance agent would get a commission exceeding 7.5% of the first year’s premium and 2% of each renewal premium payable on the policy, where the policy grants a deferred annuity in consideration or more than one premium.

In cases, where the policy grants an immediate annuity or a deferred annuity in consideration of a single premium, or where only one premium is payable on the policy, it could not exceed 2% of that premium. In any other case, it could not exceed 35% of the first year’s premium, 7.5% of the second and third year’s of the renewal premium and thereafter 5% of each renewal premium payable on the policy.

Provided that in other case referred above, an insurer, during the first ten years of his business could pay to an insurance agent and an insurance agent may receive from such an insurer, 40% of the first year’s premium payable on the policy.

Insurers have proposed to IRDAI that there should be balance between the first year and second year commissions on savings policies. This will motivate the agent to persuade the customer to keep paying the premiums even in the second year, where the cases of lapsation are high.

The traditional product guidelines that were implemented from January 1, 2014, had linked commission to tenure of a policy. Higher the duration, higher is the commission.

In order to retain agents for longer duration, there have been talks about having a fixed salary structure for them. However, not everyone is in favour of such a structure.Insurers say that for large insurers having a large agency force, a fixed salary structure can set them back by a huge expense. They would then have to drastically reduce the number of agents, affecting overall business.

There are also proposals on having a commission expense cap, rather than a fixed percentage of commissions.

For a customer too, if the commission structure is revised, the premiums will also be revised. More balanced commission structure between the first and second year of the premium paying term would mean that the first year premiums would be slightly revised downwards.

posted by:SECRETARY,LIAFI,COIMBATORE DIVISION ON 23/01/2015 AT 6.45pm

LIC TO SOON INSURE THIRD OF THE COUNTRY, SAYS MR. ARUN JAITLEY,F.M.

LIC AGENTS AGITATION-COIMBATORE SINGANALLUR AGENTS =NEWS IN THINA MANI AND THINA MALAR ON 21/01/2015