Press Information Bureau

Government of India

Ministry of Finance

15-May-2012 17:57 IST

Ushering Professionalism Among Lic Agents

Insurance Regulatory and Development Authority (IRDA) has reported that during the period 1st April 2011 to 31st December 2011, 471068 life insurance agents were terminated in the sector. The termination of an agent occurs due to various reasons – primarily non fulfillment of the minimum business guarantee, while other reasons could be death, resignation, termination owing to disciplinary reasons etc.

IRDA has informed that there were 195326 terminations in Life Insurance Corporation of India (LIC) during the period April–December 2011. However LIC added 204554 agents during this period and thereby ended with 1315413 agents as at the end of December 2011 as against an opening balance of 1306185 agents at the beginning of April 2011 showing a slight increase in the number of agents. A lot of focus is laid on ushering professionalism among agents through proper pre recruitment training as well as by stipulating that renewal commission is payable across the term of the policy. This would ensure a perennial income to the agent thereby enabling him to make agency a full time career.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

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DSM/SS/Hb

Professionalism among insurance agents promoted by pre-recruitment training and renewal commissions ensuring perennial income and career viability IRDA reported significant agent terminations largely for non fulfilment of minimum business guarantees, with LIC registering both substantial terminations and new recruitments leading to a slight net increase in agents. Emphasis is placed on promoting professionalism through mandatory pre recruitment training and by making renewal commission payable across the policy term to provide perennial income and support agency as a full time career.