Earlier IRDA was not inclined allow any agent to represent more than one company.

"We would like to introduce the concept of a combined agency by extending the four-week training programme for agents so that an agent is equipped to offer his services'' said IRDA chairman N Rangachary.

Rangachary, who was addressing a seminar on distribution of life insurance in new environment organised by Jeevan Vidya Trust on Tuesday, said the regulatory body has put a cap on the commission to be paid to the non-life broker at 15 per cent of the total premium of any deal.

The IRDA is expected to come out with a guideline shortly for the function of brokers in the liberalised regime. Rangachary said that the new players would be allowed to offer tax benefits for life insurance as per section 88 of Income Tax Act. The authority would ensure that a balance was struck so that customers `do not have to pay a pie more' and at the same time the insurer does not lose money.

According to Rangachary, the Government will not offer any guarantee on the premiums taken by a new insurance company in view of the huge capital base for starting an insurance venture and stringent solvency margins prescribed by the IRDA He said the premiums collected by the LIC was guaranteed by the Government as it had a low capital base of Rs 5 crore and the Insurance Act of 1938 does not provide for solvency margins.

He sought to allay fears on the pricing front of products by the new companies by saying, ``the new products would have to be under the scrutiny of the IRDA for 30 days before being introduced in the market for their profile and reasonableness of pricing''.