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Monday, August 29, 2016

Good news for the Indian investors, fewer bank representatives will push you to buy wrong insurance plans #ULIPs #bankassurance

Personal finance take on IRDA's latest move on banning incentives to bank staffs

IRDA bans incentives to bank stuffs, #bankassurance

Impact -
1. To help lower misselling of insurance products by bank representatives. #bankassurance

2. The structure remains untouched for the other agents with 7% incentives over and above the commision.

3. The affect on the premium difference or anyother service differential is yet to be seen post this development.

The overall commision expenses have reduced over last decade, however, it still remains a costly affair for the investors.

The commision on sales still remains very high at 35-40% on the first year, 7.5% at the seond year and 5% for rest of the tenure, especially for the offline products

While online counterpart offers better pricing compared to these agent/ bank led products, one need to be careful to compare the exact offerings and the difference in benefits, if any.


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