IRDA bans incentives to bank stuffs, #bankassurance
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.