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Insurance agents seek better deal

By Our Staff Correspondent

MANGALORE, DEC. 19. The Life Insurance Corporation of India Agents' Organisation has placed six demands before the Union Government. Among them is a plea to withdraw permission for 49 per cent foreign direct investment in the insurance sector.

At a press conference here on Sunday, Gurucharan Rao, president of the Udupi division of the organisation, said a memorandum listing the demands was given to the Union Finance Minister, P. Chidambaram, in August, but none of the demands has been conceded.

Mr. Rao said the corporation has lost 20 percent of its market share to new entrants in the life insurance business, but it is strong enough not only to contain the impact but also bounce back with 30 per cent growth with the help of the agents. But some decisions of the Government have been detrimental to its growth.

He said the insurance broker system, and institutional, corporate and cooperative agency systems should be withdrawn. By extending agencies to all these categories, the insurance sector has become weak and directionless. He said from its inception, the corporation depended largely on individual agency system. At this point of time when competition is intensifying, it is better not to dilute the spirit of insurance by spreading it to other professions. The organisation has demanded a welfare fund, central provident fund and medi-claim to agents and their families.

Another demand of the organisation is withdrawal of service tax on premium and revoking of the decision to enhance the minimum sum assured from Rs. 30,000 to Rs. 50,000. In rural areas, the sum assured should not be more than Rs. 10,000.

Mr. Rao said there are more than 10 lakh agents in the country. Owing to their hard work, the corporation has an asset base of Rs. 3.75-lakh crores.

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