Capping commissions fixes the price of advice, not the incentive behind it. Term pays 25-30% once; endowment and ULIP pay a trail for years. Agents push what pays, not what protects.
The pattern across my clients: most only learn what they actually bought at claim time, and loan disbursal counters quietly became insurance counters.
And a lower cap may just push insurers to spend more on their own sales force and digital funnels, which helps no first-time buyer who needs an exclusion
Didn't understand below para, could you pls explain?
The impact depends on what a distributor sells. IRDAI proposes zero commission for distribution entities selling third-party cover on new vehicles. That is the compulsory insurance that pays for harm caused to others. Other motor policies, including cover for damage to the customer’s own vehicle, would still pay commissions.
I meant the premium of TPL is mostly on the lower side as it has zero addons (Except the PA cover). Additionally, commission has always been 2.5%-5% on TPL, hence, not much effect.
The biggest damage will be seen in property and liability
Capping commissions fixes the price of advice, not the incentive behind it. Term pays 25-30% once; endowment and ULIP pay a trail for years. Agents push what pays, not what protects.
The pattern across my clients: most only learn what they actually bought at claim time, and loan disbursal counters quietly became insurance counters.
And a lower cap may just push insurers to spend more on their own sales force and digital funnels, which helps no first-time buyer who needs an exclusion
Didn't understand below para, could you pls explain?
The impact depends on what a distributor sells. IRDAI proposes zero commission for distribution entities selling third-party cover on new vehicles. That is the compulsory insurance that pays for harm caused to others. Other motor policies, including cover for damage to the customer’s own vehicle, would still pay commissions.
It means only OD will be covered for commission purpose not TPL. TPL is largely a very minimal percentage of premium so it won’t affect commission.
Depends on IDV, wouldn't say miniscule for IDV of 4 -5 lacs
I meant the premium of TPL is mostly on the lower side as it has zero addons (Except the PA cover). Additionally, commission has always been 2.5%-5% on TPL, hence, not much effect.
The biggest damage will be seen in property and liability
Thanks !