Date:03/08/2004 URL: http://www.thehindubusinessline.com/2004/08/03/stories/2004080301610800.htm

Back IRDA to consider brokers' plea on special discount

Our Bureau

Hyderabad , Aug. 2

THE Insurance Regulatory and Development Authority (IRDA) has assured the insurance broking community that it would examine the five per cent special discount currently offered by insurers directly in favour of the corporate entities, which brokers felt was a hindrance to their survival.

Addressing the one-day conference of insurance brokers organised by the Insurance Brokers Association of India (IBAI) here, the IRDA Chairman, Mr C.S. Rao, said the IRDA had appointed a committee to look into the relevant issues and suggest measures to increase insurance penetration and density by strengthening the distribution network in the country.

He advised insurance brokers to convince corporate entities on their superior services and lure them to avail of their services by foregoing the special discount of five per cent offered by insurance companies.

Mr Rao said the regulator preferred to adopt a cautious strategy towards detariffing.

Mr Rao said some of the countries that went aggressively towards detariffing the entire insurance industry had suffered major setbacks and reverted to the earlier tariff structure. Appreciating the role played by the private sector players in the insurance industry, the IRDA chief said the industry witnessed a robust growth in the last four years.