Insurance Sub Broking Is Coming In India

By Author: Health Insurance
Total Articles: 2
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It seems longstanding demand of Insurance Brokers will be fulfilled soon as Insurance Regulatory and Development Authority ( IRDA) has gone one step ahead by inviting comments on the report which was submitted in February 2013.

It is understood that many organizations have submitted comments on this report.

According to S. K. Sethi Vice President Insurance Foundation of India “We have come to know that many organizations have submitted comments on this report and some of the prominent organizations are:

• PHD Chamber of Commerce & Industry, New Delhi
• Insurance Foundation of India, New Delhi.
• Insurance Brokers Association of India, Mumbai
• Bajaj Capital Ltd., New Delhi

Insurance Foundation of India is a not for profit organization (Registered under Trust Registration Act, 1882 Government of India). It organizes thought provoking conferences towards growth of Insurance Industry in the country.
PHD Chamber is one of the prestigious Chambers in the country. It is 108 years old and thus, it takes the pride of being one of the oldest Chamber’s in the country. ...
... The Chamber acts as a catalyst in the promotion of industry, trade and entrepreneurship. The Chamber comprises of over 1790 Corporates as its direct members and serves more than 48,000 indirect members through 194 Association Members and 8 Secretarial Affiliates.
Recently Insurance Foundation of India conducted “Conference on Role and Scope of Sub Brokers in Insurance” in association with PHD Chamber of Commerce & Industry in New Delhi. This conference was attended by 80 delegates from:

• Insurance Companies
• Insurance Brokerage Firms
• Insurance Agents / Advisors
• Insurance Surveyors
• Insurance Clients / Customers
• Legal Firms
• Consumer Welfare Organizations
• Those aspiring to become Insurance Sub Brokers – Share Brokers, Chartered Accountants, Wealth Management Experts, Mutual Funds Advisor, Retired Personnel from Insurance Companies etc.
• Press & Media

The speakers / experts who participated in the discussion were:

• Mr. M. K. Doogar Chairman, Banking & Financial Services Committee, PHD Chamber of Commerce & Industry
• Ms. Pushpa Girimaji Consumer Activist and Columnist
• Mr. A. S. Narayanan Chief Distribution Officer, Bajaj Allianz Life Insurance Co. Ltd.
• Mr. Sanjiv Bajaj Managing Director, Bajaj Capital Insurance Broking Pvt. Ltd.
• Mr. Dipankar Acharya Regional Chief Executive - North & West, Royal Sundaram Alliance Insurance Co. Ltd.
• Mr. Joginder Bajaj General Manager, Punjab National Bank
• Mr. Vimal Goyal Head Corporate & Institutional Business, SMC Insurance
• Mr. S. K. Jain Managing Director, Embee Insurance Brokers Limited
• Mr. S. K. Sethi Vice President, Insurance Foundation of India
• Mr. S. K. S. Kanwar Chief Regional Manager, The Oriental Insurance Co Ltd.
• Mr. Pawan Puri Co- Chairman, Insurance Banking & Financial Services Committee, PHD Chamber
• Mr. Debjit Talapatra Director (States) PHD Chamber of Commerce & Industry

On interaction with the delegates as well as its members, Insurance Foundation of India has compiled a detailed document on comments/ recommendations and these have been sent to Insurance Regulatory and Development Authority for consideration.

Salient points on which IFI has given comments are pertaining to;
1. Permission to sell commercial products
2. Exemption to be granted to Experienced / Educated persons from 50 hours training
3. Reduction in high examination fee being charges by IRDA. This should be brought down to Rs.100
4. Banks to have option to be come Broker or Sub Broker.
5. Individuals should also make investment of Rs 1 lakh
6. Banks should give micro loan of Rs 1 lakh to individuals who intend / decide to make career of sub Broker
7. On reaching premium income of Rs 10 crores for 2 years – there should be no need for compulsion to become broker
8. No need for maximum premium limit of Rs 1 lakh
9. Increase the licence period of broker firms to 10 years as sub broker will have licence period of 5 Years.

The detailed comments are available on link http://www.ifingo.org/insurance-broking-report.php