Public sector general insurance agents seek financial package

All India General Insurance Agents Association (AIGIAA) , an industry association representing 1.2m agents of India's four public sector general insurers, wants every agent to get a minimum 10% of the total commission earned last year as an ex-gratia payment.

According to a news report published by moneycontrol.com the association has written to the prime minister’s office seeking a financial package to cover the loss of earnings due to the 40-days national lockdown. The association said the public sector general insurance industry is also facing financial turmoil.

“We have already lost the majority earnings of this month and subsequently, we will be losing total earnings for the next four to five months or even more.”

The association has sought directions from the Insurance Regulatory and Development Authority of India and the four public sector general insurance companies to provide the agents a financial help package. The four PSU non-life insurers are New India Assurance, Oriental Insurance, National Insurance and United India Insurance.

“Considering the total earning of our agency commission from April 2019 to February 2020, at least 10% out of total commission earning last year should be given to every individual agent as ex-gratia payment for four consecutive months,” said the letter. AIGIAA president Manas Kumar Dhal said the agents should also be provided a $20,000 medical insurance cover each. The finance ministry had announced a $65,250 insurance cover for frontline workers in the healthcare sector treating COVID-19 patients.

Currently, almost 70% of the annual premium collection by the four public sector general insurance companies comes through the agents.

While insurance is classified as an essential service, field visits by agents to sell insurance policies have come to a halt due to the national lockdown and related restrictions on travel and suspension of public transport. Branch offices of these companies are also either shut or functioning with skeleton staff.

Source: Asia Insurance Review