Minister of State for Finance Namo Narain Meena said categorically “no” in a written reply to the Rajya Sabha when asked whether the government is considering any proposal to discontinue insurance agents’ commission.
A government-appointed committee headed by D Swarup had proposed phased elimination of upfront commission paid to insurance agents by April 2011 in its discussion paper. However, the committee has not yet submitted its final report to the government.
The Insurance Brokers Association of India (IBAI) has dubbed the recommendations, which proposed doing away with commission charged by insurance agents by 2011, as “misconceived.”
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