The Hindu Business Line : IRDA to act tough against erring officials

The Insurance Regulatory and Development Authority (IRDA) has decided to take tough action against insurance company officials found guilty of manipulation in the examinations conducted for agents.

Mr C.S. Rao, Chairman, IRDA, told Business Line that if the fficials were found endorsing impersonation of candidates at agent examinations, the issue would be taken up with the CEOs of the respective companies.

Officials sacked

"In a recent case, officials of an insurance company tried to bribe the principal of a school, where the agent examinations were to be held. We took up the issue with the CEO of the company and the officials were sacked," Mr Rao said. The issue came up as the Insurance Institute of India had recently unearthed large-scale impersonation of candidates at the agents' examination held at different locations this year.

Syllabus revamp

The Life Insurance Council has now taken up the issue of revamping insurance education for agents. A sub-committee for `Intermediary Education and Training' has been constituted and the three main issues that will be examined include revision of syllabus, training and the robustness of the examination system. The report of the sub-committee will be submitted to the IRDA by month-end, said a member of the Life Insurance Council.

Training hours

The point of contention between the insurance companies and IRDA has been the mandatory 100 hours of training stipulated by the regulatior. Insurance companies say that 100 hours do not guarantee quality training.

At a recent meeting held by the Life Insurance Council, a number of insurers suggested that the training of agents be outsourced to the companies while only the examination be conducted by accredited institutes.

Mr Rao said that the mandatory 100 hours was to ensure uniform training for all agents.

He said, "Agents need to first understand the basics of insurance.

Training

The training imparted by the companies in terms of their philosophy, marketing strategy as well as the disclosures about products would have to be in addition to the basics".

He also said that the syllabus was targeted at candidates who have passed 10th or 12th standard and could take up `insurance selling' as a career. Hence, 100 hours was considered necessary for completing the syllabus.

Flexible

"If the revised syllabus requires less or more number of hours, then the IRDA is willing to be flexible on the issue. "We are open to the suggestions of the CEOs and will consider the revision of the number of hours if there is suitable justification."

A CEO of a private life insurance company said, "The standards in terms of insurance education have deteriorated as the mandatory 100 hours has increased absenteeism. "Currently, only 25 per cent of the new agents survive annually".

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