within a fund due to various charges. ULIPS had undergone major changes two years ago.
The new guidelines have also reduced commissions on short-term policies and linked the quantity of commissions to the premium paying period for all products.
As a result, agents of single premium non-pension products will receive remuneration of up to 2 per cent of the premium paid. In the case of regular premium insurance policies, a policy with a premium paying term of five years will pay up to 15 per cent in the first year, 7.5 per cent in the second and third year and 5 per cent subsequently.
As the premium paying term increases to 12 years and above, the commissions payable in the first year increases up to 35 per cent in case the company is at least 10 years old and 40 per cent in case the company is less than 10 years old. The regulator has created the entire format on the basis of tenure of the policies.
- By George Mathew