International BusinessInsurance brokers insist on speedy licence renewal
The Insurance Brokers Association of India (IBAI) today demanded implementation of a mechanism to reduce delays in renewal of licences and dubbed the recommendations of the Swarup Committee as being “unpractical” and “misconceived”.
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“We believe that the recommendations of this committee are misconceived and the Indian insurance market is not that developed to accept them”, Bharat J Boda, IBAI president, said speaking at the sixth annual summit of the insurance brokers association of India here.
Referring to the commission’s recommendation of phasing out commission and adopting a fee-based structure, he questioned the need to raise an issue about brokerage or commission which has been a well-settled practice.”
Drawing attention to problems faced by members over delay in renewing licences, he said though the first renewal in 2006 was smooth, in 2009 brokers faced delays, due to which some insurance companies stopped accepting business from members.
“As on date many licences are pending with IRDA for renewal”, he said adding, “We inisist that a mechanism be established to reduce delays faced by brokers.”
Earlier, it had been agreed with IRDA that pending renewal, a “comfort letter” would be issued to members. But discontinuation of this practice has left brokers helpless and adversely impacted business of brokers, he said.
Boda said that despite the presence of 42 insurers in Life and General Space, the awareness, reach and penetration of insurance among people has “not attained desired levels”.