Financial Daily from THE HINDU group of publications
Friday, Mar 05, 2004
Financial Daily from THE HINDU group of publications Friday, Mar 05, 2004 |
||
|
|
||
|
Money & Banking
-
General Insurance IRDA notification, brokers unhappy Our Bureau
Chennai , March 4 GENERAL insurance brokers are not too happy with the Insurance Regulatory and Development Authority notification. "Our crying continues. The notification is not really a satisfactory answer to our representation," said Mr R. Thyagarajan, Chairman of the Shriram group, which has an insurance broking arm, Armour Consultants. He observed that larger companies would find it difficult to forgo the special discount and allow insurance companies pay the brokers a commission. Even if companies find a broker's service of value, they may not want to forego the special discount, for the fear of inviting suspicions of kickbacks, Mr Thyagarajan said. Today, at a time when the insurance broking business is at a nascent stage, it is necessary to create conditions for them to be remunerated adequately, not choke them out of business, he said. Another broking firm, Alegion Insurance Services, agreed that it was difficult for brokers to make money under the specified rules, but nevertheless welcomed the measure saying that it is necessary to "quell the menace of rebating." The company's Director, Mr N. Raveendran, observed that the brokers would have to wait it out until detariffing takes place. Today, when neither the insurance company nor its client believes that a broker's service is necessary, it is unrealistic to expect the brokers to be paid substantially, even though the brokers need money to invest in their operations.
More Stories on : General Insurance | Regulatory Bodies & Rulings | Financial Services
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|