The Hindu Business Line : IRDA warns of stern action to check exam frauds

"Insurers found to be involved would be debarred from sending their agents for examinations for a pre-determined period of time,'' says IRDA chairman

Mumbai June 14 The Insurance Regulatory and Development Authority (IRDA) believes that insurance companies are colluding with agent training centres in perpetuating malpractices in examinations.

"There seems to be a nexus between insurers and the training providers in these malpractices. We are gathering more information; if this collusion is established, we will proceed against them," said Mr C.S. Rao, Chairman, IRDA.

He also said that the insurers found to be involved would be debarred from sending their agents for examinations for a pre-determined period of time.

Paper leaks, impersonations and fake training centres have been some of the many irregularities in agent training that the insurance regulator has had to grapple with.

"It is very tough to streamline the examination system in India as these tests are happening every fortnight at different locations," Mr Rao said.

The agent examinations are held in 160 locations in the country. Insurance companies have been rapidly expanding their agency forces in the last seven years.

In 2000, 53,000 students appeared for the examination; this jumped to 4.38 lakh in 2005, 13.88 lakh in 2006 and is estimated to rise to 20 lakh in 2007.

Mr Shewak Gidwani, Secretary-General of the Insurance Institute of India, said that competition in the industry has increased the laxity in compliance.

The institute has been authorised to conduct these examinations by IRDA. It draws up the syllabus, sets the question papers and evaluates answer papers.

The institute recently held a meeting with all insurance companies.

"The insurers have agreed to identify officials who may be involved in such malpractices. We will also ask all the centres to have police protection when they conduct these examinations, " Mr Gidwani said.

The institute also plans to rope in the Kendriya Vidyalaya schools as examination centres.

"This may increase the discipline at the centres."

Currently, both private and public schools serve as examination centres.

In the past few years, cases have been filed in Ahmedabad, Kota and Chandigarh against cheating in the examinations.

Besides paper leaks, attempts have been made to bribe the principals of the school centres to allow cheating, Mr Gidwani said.

"Instead of pursuing legal action, we hope to make lasting changes in the examination system. We have appealed to insurance companies to bring in professionalism, which is in the interest of everyone."

The CEO of a private life insurance company said that with insurers recruiting in large numbers, the pressure has increased on branch managers to make sure their agents pass the examinations.

More Stories on : Regulatory Bodies & Rulings | Insurance | Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page