The Insurance Regulatory and Development Authority of India (IRDA)
is thinking of lowering the commission paid on the first premium
paid to life
We are talking to
insurance agents associations on revising the commission paid
on the first premium, IRDA chairman N Rangachary told reporters
after addressing a seminar on pension funds reforms, organised by
the Federation of Indian Chambers of
Commerce and Industry.
the commission on the first
premium is 40 per cent of the premium amount paid during the year.
The commission on subsequent years are 5 per cent of the premium
amount. The first year commission is high, which leads to
agents not concentrating on servicing the policy in later years
and instead focusing on new businesses, Rangachary said.