The Insurance Regulatory and Development Authority (Irda) has constituted a 10-member committee to examine the issues concerning the structure of intermediaries. Interdiaries, which include agents, are a vital link between the insured and the insurer.Over the past few years, Irda has enlarged the scope of the intermediary structure from the traditionally tried individual agent to the corporate agent, micro insurance agent, the bankassurance mode and the referral system. Insurers have also adopted other channels of sales to suit e-selling.The committee, headed by former chairman of Life Insurance Corporation of India NM Govardhan, will submit its report by December 31, 2007.Some of the practices that have crept into the system in terms of remuneration or reimbursement of expenses or incentive schemes require detailed examination to ascertain whether they are in conformity with the provisions of the Insurance Act and their impact on the acquisition cost, feels Irda.The committee will study these aspects. The committee members include the chairmen of LIC and National Insurance Company, and managing directors of Max New York Life Insurance, HDFC Standard Life Insurance, Met Life Insurance, Tata-AIG Life Insurance, IFFCO Tokio General Insurance and ICICI Lombard General Insurance.
