those who have experience in holding shares in a regular demat account of duration of minimum of two years. In fact, Ulips must be marketed only by agents who are qualified to sell MFs.
The incentives of foreign jaunts and expensive gifts must stop immediately as it proves to be big source of mis-s-selling;
There is also a need to rationalise returns on selling. When an agent sells a life insurance product in making payment of R1 lakh premium, he gets R40,000 and a mere R100 for pension fund product. Obviously, this is temptation to force-sell life insurance, which unfortunately has driven to malpractice of rebating.
The banking industry has embarked on an expansion mode by moving to several villages with a population of 2,000 through business correspondents. The insurance industry has no such strategy in hand. It can rope in business correspondents for selling of insurance products in their areas.
All deposit accounts in banks and retail loans, which as per RBI figures stand at R6,22,752 crore, should be covered by life insurance. Imagine the sense of relief the family will have on being protected against repayments of housing, consumer durable, credit cards and other loans on death of account holder.
The life insurance industry is focused on short-term gains and needs to make a choice for long-term outcomes aimed at satisfying customer needs. This, it can do by employing qualified and educated staff who can come up to the challenges involved. Let not the industry destroy itself by overlooking the challenges.
The author is an advisor in Amity University