This post continues on what I posted two days back on IRDA asking Agents to disclose commission.
A friend told me that the idea looks very good on paper, but practical implementation is very difficult. Let’s see how.
The Irda had issued a circular on the “benefit illustration” on January 25, 2008. This circular made it mandatory for insurance companies to take the signature of the policyholder on the benefit illustration stating that he (the policyholder) has understood the policy, before taking the policy.
Even then, I know a lot of incidents where agents sign this benefit illustration document themselves, without going through the trouble of explaining the Ulip to the prospective policyholder. Or they just pass it off along with a slew of documents that the policyholder needs to sign at the time of taking the policy.
Another question here is, how many Agents actually understand ULIP themselves other than the fact that it gives a good commission.
And what about us? How many of us would actually understand how an Ulip works, even if the agent were to try to explain it to us.
I still believe that the real issue is not the commissions but a satisfactory customer experience
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