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Kochi , July 17

THE Kerala unit of the All-India General Insurance Workers Association is drawing a battle line against the changes introduced in the insurance sector by the Insurance Regulatory and Development Authority (IRDA).

The decisions of the Government in the general insurance sector ignoring its social obligations are aimed at surrendering this sector to private monopolies, say Mr P.I. Thampy and Mr Anu Jacob, President and Secretary respect- ively of the association. The hike in the premium of vehicle insurance, mediclaim and fire engineering is a clear indication of its intentions, they said.

Appointment of third party administrators when the public sector insurance companies were having experienced staff has rendered 50 per cent of them redundant, they added.

Hitherto, most of the business was generated by the development officers and the agents under them. Now, with the entry of private corporates, they have become surplus. "What surprises one is that while the commission for ordinary agents ranged between 0 and 15 per cent, that of the private sector broker is 10 to 17.5 per cent," they said.

The situation has reached such an alarming stage that lakhs of agents who were making a living out of this business are rendered jobless.

In the insurance sector, the wages of the development officers are fixed based on the business they generate. Depending on their performance only increments are granted and even their services could be terminated. Now the entry of brokers and corporate agencies, as part of the new marketing strategy, is depriving the development officers and the agents of the businesses, which they had generated and being serviced for several years, they said. Most of the financial institutions have now become corporate agents of the insurance companies.

They alleged that the private insurance companies were reluctant to deal with third party insurance, which is compulsory under latest Motor Vehicles Act. Besides, for its renewal, the policyholder will have to approach the insurance company's office where from the policy was taken before, and this has become an uphill task, they said.

They also alleged that a number of senior officers retired from the general insurance companies have taken up employment with the brokers, corporate agencies and private insurance companies and they were snatching away the business from public sector establishments.

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