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nirav (Private)     16 August 2008

An Issue touching all-Please involve

In Life Insurance the term of contract is long say 15-20 years. The Agents are paid Renewal commission on the premium paid by the policy holder throught our the term of the policy irrespective  whether is renders service or not. It so happens that olicy holder has transferred his policy to some other state yet the agent keeps on accruing 6% of the premium paid as commission. The Policy has no option of CHANGING his agent. Even the Insurance Company says that there is not provision of changing Agent. Can a PIL be filed?????


Learning

 12 Replies

shamit sanyal (advocate)     16 August 2008

PIL can always be filed but i dout whether it will be successful or not because as per the prevailing norms Public intirest at large is not being effected,but still lets see what the other members has to submit.

D.V.RamaKrishna (Advocate)     17 August 2008

Nirav,


Why do you want to change the Agent at all? If the the agent is being paid any commission from renewal premium recieved from the policy holder, then it is contract between the insurance company and the agent about payment of commissions. Once a policy has come into effect then the role of the agent with the policy holder is minimal as the policy holder has the option to deal with the insurance company on his/her own with the insurance company. So there is not chance that you can file any PIL in this matter as there is no public interest at large is involved. If you are at all aggrieved with your agent, there are other options of proceeding against him like filing civil/consumer case against the agent/insurance company for redressal of your grievance.

nirav (Private)     18 August 2008

Mr, RamKrishna, I agree with you,sir. Agents are paid renewal commission as a percentage of Premium paid by the policy holder and that to a sizable (6%) every year. Insurance company holds that it is duty of policyholder to pay premium - to whichi agree. Co does not hold an agent to be liable for any deficiancy in service. My point is that when a Policy holder is charged sizeable amount from his premium it should be his right for continued services from the Co. I am very much interested in pursuing this matter. Please advise. 

nirav (Private)     18 August 2008

Mr Sanyal, Is there a defination of "Public at large" in the Act. Speaking of LIC - it has 18 crore Policyholders, Does not that make 'Public at large".

SANJAY DIXIT (Advocate)     18 August 2008

Dear,


Agent is gettig the renewal commission by the company as per laws and norms already settled. Agent is not getting this as the charges for providing the after sale services to  his policyholder and in my knowledge his is legally not bound to do that. I agree wit the views made by Mr Ramkrishna in this regard.

nirav (Private)     18 August 2008

Sh. Sanjay and Sh Ramkrishna......Though i am not convinced, I accept you are right because you are Senior while I am still a student.Thanks.

nirav (Private)     27 August 2008

dear Mr Sanjay,


Agents Regulation act,1972 states that Agent is not paid reneual commission as gift but to render services to the poicy holder. can wetake a cue from this act forfurthur action against agent for not giving service.

nirav (Private)     27 August 2008

Dear MySanyal, Agents Regulation act,1972 states that Agent is not paid reneual commission as gift but to render services to the poicy holder. can wetake a cue from this act forfurthur action against agent for not giving service.

prabodh kumar patel (advocate)     11 October 2008

i think the agent is being paid for providing service and advice regading the very policy but when the policyholder changes his place and it is not possible by the agent to provide service for that particular policy he should be paid commission for that, well that's my view.


I further think that there should be provisions for change of agents.

prof s c pratihar (medical practitioner &legal studies)     14 October 2008

i had discussion with my lic agent mr susil bose who is a clubmember agent--means his target is 5 crores per anum.he opined that agent is guided by manual for agents.he is expected to give all policy services like assistance pf policy maturity, loan ,death claim etc. except deposit of premium.if he does not act in terms of agency manual complaints may be lodged against him.there is a training programme for them. i shall go through the manual personally and let you all know further.

Rajan Salvi (Lawyer)     15 October 2008

A manual is a guideline for following procedure. Unless real prejudice is caused because of serious lapses on the part of the agent , I do not think it may carry much weight with the judge as a manual does not have the force of law such as a Circular or government resolution. Please make sure whether really agent cannot be changed. If not and the deficiency in service persists, file PIL seeking suitable directions to the Insurance company to carry out necessary amendments in thier rules/regulations etc..

Rajan Salvi (Lawyer)     15 October 2008

A manual is a guideline for following procedure. Unless real prejudice is caused because of serious lapses on the part of the agent , I do not think it may carry much weight with the judge as a manual does not have the force of law such as a Circular or government resolution. Please make sure whether really agent cannot be changed. If not and the deficiency in service persists, file PIL seeking suitable directions to the Insurance company to carry out necessary amendments in thier rules/regulations etc..


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