Topic: Why a LIC agent will get % from my each premium ?

No doubt, when we think of insurance buy it from LIC. Having said that LIC has a very awkward business policy. When a customer buys an insurance policy from LIC, the agent will get commission throughout the premium paying period by the insurer. Yes, to grow their business LIC should give them ONE TIME commission to their agents but giving % throughout the life is totally not justifiable. If LIC will give one time commission to their agents, the ultimate gainer will the end customer by paying lower premium that what he/she paying now. Govt/IRDA must implement this practice asap.

This message was edited 1 time. Last update was at 13/10/2010 11:06:19

Hi,

i am sujendra

When a customer buys an insurance policy from LIC, the agent will get commission throughout the premium paying period by the insurer. Yes, to grow their business LIC should give them ONE TIME commission to their agents but giving % throughout the life is totally not justifiable.

This message was edited 3 times. Last update was at 13/10/2010 11:05:01

Respected ...

I have different view for this.

LIC giving % to commission for throughout the life span of policy for betterment of Customer only.

Its legal duty LIC advisor/agent that thet should serve there policyholder regarding reminding their premium dues, nominee change, address change, death claim, partial withdrawal, loan, surrendering policy,etc.

Normal consumer or policy holder are not familiar with these practices.

Another one, if you check the % of commission it reduce to 2% after five years of policy (Depending on policy).

Thats what i think...

This message was edited 1 time. Last update was at 11/08/2010 15:17:54

All the reasons you have mentioned for % eating can be done ONLINE. Though LIC has online facility to check premium calendar and pay premiums they should come with these profile editing features except death claim

There is NOT a single reason to explain, Why the agent will eat the % from my premium. Even LIC does not sell policies without an agent !!! Agents think: Kisiko ek bar bakra banao, aur sara jindegi % khao.

But not to worry. Already IRDA has thought of it and in future this will be abolished like MF entry load.

Dear Mr Pradhan,

Yes you are absolutely right that LIC has given online portal for its policyholder but again i will say how many of them aware of it & who have so much time to go to cyber, if net facility is not available to at home.

Please never say or think, that agent thinks like this about their customer/clients. Like us they also have brain, they can think & decide. I don't think any agent forcefully take policy from any clients without proper information about any plans.

Regarding IRDA decision, will wait for that & See...

This message was edited 1 time. Last update was at 13/10/2010 11:07:06

lic agents provide after service and premium payment and claim processing for that they receive commissions
An insurance website which contains insurance plan details and insurance terms, life insurance policies, best insurance policy, health insurance and lic insurance discussed by lic agent in chennai vignesh.

My agent is not giving me service. He is no more working as LIC agent he has switched to Tata AIG. I am paying all the premium online. Still he is entitle for commission %. I dont want commission, but I will prefer to donate the commission. Pls advise me

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