No decision by IRDAI on disclosure of commission paid to LIC agents

Life Insurance Corporation (LIC) of India Managing Director Raj Kumar said that upfront disclosure of commission of agents in the policy papers has not yet been decided by the insurance regulator Insurance Regulatory Development Authority of India( IRDAI ).

“IRDAI has not taken any decision on disclosing the commission paid to insurance agents on the policy document,” Kumar said in an analyst call.

On being asked what kind of impact it will have on the insurance sector if IRDAI goes ahead with the decision, Kumar said IRDAI is having extensive consultations with all stakeholders on the issue.

Insurance intermediaries like agents and brokers voiced their views against the proposal to make it mandatory to specify the amount of commission paid on the policy document.

Kumar said that the target set by IRDAI for insurance companies is a bit stiff.

In a first-of-its-kind advisory, the IRDAI has proposed premium growth targets over five years for life insurance companies, in a bid to double insurance penetration in the country.

Kumar also said that LIC is looking at 30-35 percent growth year on year and said that the insurance penetration in India is still 3.2 percent lower than in other Asian countries.
LIC reported a jump in its April to June quarter net profit at Rs 682.89 crore.

The state-run life insurance behemoth, which went public recently, had a net profit of Rs 2.94 crore in the year-ago period.
The first-year premium for the reporting quarter came at Rs 7,429 crore as against Rs 5,088 crore in the same quarter last year, it said in an exchange filing after its board meeting.

The total income came at Rs 1,68,881 crore for the April to June quarter as against Rs 1,54,153 crore during the same period in the previous fiscal, it said.

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