As Insurance Regulatory and Development Authority (Irda) has introduced new regulations from first January 2014 which has lowered commission for agents, in nearly a decade time, sales of new insurance policies have fallen for the first time in February 2014.
Country’s largest insurer, Life Insurance Corporation of India (LIC) has recorded a 13% decline in annualized premium equivalent, while private insurers recorded an average 22% decline on year-on-year basis.
Annualised premium equivalent for the industry together fell 17% in February 2014 from a year ago period to Rs 3,254 crores. Annualised premium equivalent is arrived at by taking into account individual regular premium plus 10% of new single premium.
Total new business income, including individual and group, stood at Rs 7,780 crores in February 2014, down 2.45% from the year ago period.
Insurers say that after a heavy December, agents are going a bit slow and this should pick up in March. February is generally a busy month for insurers, as people tend to invest in life insurance policies to maximize savings under income tax rules.
Investment in life insurance policies with sum assured of at least ten times the annual premium are eligible for tax deduction within Rs 1 lakh limit of the section 80C of income tax act.
During April-December 2013, the industry had reported a 22% rise in new business income. This was mainly due to aggressive selling by agents before the new regime came into affect. This year all insurance products have been re-launched to comply with new norms.
Categories: News | Tags: Insurance, Insurance New Policies, Life Insurance Corporation of India, Life Insurance Policies
Insurers Allowed To Collect Advance Premiums
The Insurance Regulatory and Development Authority (IRDA) has modified its linked and non-linked insurance products regulations. Now IRDA has allowed insurers to collect advance premium.
Insurers are allowed to collect advance premium within the same financial year for the premium due in that financial year. However, if the advance premium is collected for the next financial year, then insurers can collect advance premium for a maximum period of three months in advance of the due date of the premium.
The premiums collected in advance can only be adjusted on the due date of the premium. And also commission will be paid after adjustment of premium on due date.
Earlier, the IRDA had said that premium due may be collected 30 days before the due date. However, in the monthly premium payment mode, insurers could accept three months premiums in advance only on the date of commencement of the policy.
No comments:
Post a Comment