Page 18 - Insurance Times December 2015 SAMPLE
P. 18
Private Life Insurance
News
IDBI Federal Life Insur- PoS staff should sell standardized products: Life
ance fined for violation insurers
of norms After the IRDAI allowed over the conduct by them. The chief executive
counter products in the general and officer of leading life insurer said that
Irdai has imposed a penalty of Rs 16 health insurance space to be sold by allowing PoS persons as the second tier
lakh on IDBI point of sales (PoS) persons; life insur- distributor in the life insurance space
Federal Life ers are planning to approach the regu- will help increase insurance penetra-
Insurance lator to allow the PoS to sell
Company simple products, such as tion by bringing in more dis-
Ltd for vio- term life insurance plans, tribution into the system
lation of who require lower training and reducing the overall
and technical knowledge. cost of distribution.
norms, including higher commission
payment. In comparison to an insurance agent, Insurers say that hiring PoS
PoS persons will not have to undergo persons will be less capital intensive as
"... as directed under the respective rigorous training as they will be licensed they can be engaged either by an in-
charges, the penalty of Rs 16 lakh to sell only standardized products. surer directly or intermediaries, such as
shall be remitted by the Life Insurer insurance/corporate agents and insur-
within a period of 15 days from the The PoS persons will be recognized ance brokers.
date of receipt of this order," the through their Aadhaar or PAN (Perma-
Insurance Regulatory and Develop- nent Account Number) cards. Also, to Furthermore, lower eligibility criteria
ment Authority of India (Irdai) said avoid mis-selling, the IRDAI has said will allow more distributors to be hired.
in its order. that insurers or intermediaries hiring According to the regulator, those who
such persons will be liable for any mis- have passed Class X can be appointed
IDBI Federal Life was also imposed as PoS person.
a fine of Rs 5 lakh for payment of
selling and distribution expenses HDFC Life introduces online unit-linked pension plan
over and above approved commis-
sions. Penalty of Rs 1 lakh was im- Private Life insurer HDFC Life announced the launch of
posed for death settlement claim to Click2Retire, an online unit-linked pension plan that aims to
master policy holder under non- help individuals plan retirement by starting to invest at as
employer-employee group policies. early as 18 years of age. The plan only charges fund man-
agement fee and investment guarantee charge.
"Payment of claims monies in favour
of master policy holder is in FIPB approved 16 FDI proposals worth crores
violation...the Life Insurer is relying
on only confirmation from the mas- The Foreign Investment Promotion Board (FIPB) recently
ter policy holder of having taken dis- cleared 16 FDI proposals worth Rs.1,152.53 crore including that
charge from the respective benefi- of Edelweiss Tokio Life Insurance, Encore Asset Reconstruction
ciary”, it said. Company and New Laundry Media. Meanwhile, Cadila
Healthcare's FDI proposal of Rs.5,000 crore has been recommended for consider-
ation in cabinet committee on economic affairs, according to an official release.
14 The Insurance Times, December 2015
Copyright@ The Insurance Times. 09883398055 / 09883380339
