KOCHI: Insurance agents have demanded that brokers and corporate agents be barred from doing business in the sector

At a meeting of the agents held here on Saturday, the General Insurance Agents Welfare Association said the Government should introduce welfare measures to the agents who had been instrumental in improving the insurance business in the country. CITU leader Krishnamoorthy inaugurated the meeting.

The association expressed concern over the fact that the agent's commission have been reduced and the Government was encouraging private insurance companies. The agents were unable to explore business opportunities in the medical and vehicle insurance owing to a variety of restrictions imposed by the Government, the association representatives said.

The proposed removal of tariff restrictions from next year would make the situation more difficult for the agents. A big jump in the premium of mediclaim policies as well as vehicle insurance is expected.

Consequently, brokers will exert more influence on the insurance companies. The companies might introduce premiums on a variable scale. Such developments would pose more problems to the agents, according to the agents.

Meanwhile, the Kerala State General Insurance Employees' Union has urged the Government to allow public sector insurance companies to handle the family insurance scheme to be implemented in the State.

The proposal for handling of the scheme by a private insurance company had raised several doubts, union general secretary C.B.Venugopal said.

In a statement, he argued that the premium of Rs.99 would be inadequate to provide the claims as envisaged by the scheme.

This would mean that there would be gross violations at the implementation stage. On a modest account, the private company would have to spend Rs.700 crores while its premium income would be below Rs.100 crores.

In this context, he observed that there had been scores of instances of closure of private insurance companies in the United States and other countries.

The public sector insurance companies had been implementing various schemes at the panchayat and village levels.

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