Agitated over the decision of the public sector insurance companies to restructure the commission rates of mediclaim policies, the General Insurance Agents Association will stage a strike at the United India Insurance (a public sector undertaking) regional office here on Thursday.
The members have lashed out against the company’s decision to reduce the rates of the mediclaim policies, which will in turn affect the agents in the long run.
According to the agents, if the reconstructed commission rates are brought into affect, lakhs of agents across the country will be affected in a big way.
“We play a major chunk in selling mediclaims to the public. However, the General Insurance company has failed to realise this and have cut down the agent’s commission,”
said General Insurance Agents Association general secretary V S Sreenivasan.
According to him, a circular was passed recently by the four general insurance companies in the country to reconstruct the commission rates. “Lakhs of general insurance agents are present in the country and they depend on this commission for their livelihood,” he said.
He also added that at a time when tough competition prevails in the insurance industry, the public sector agents are facing a hard time.
“Private companies are attracting customers with lower premium. So naturally the public will sign up for their policies and the agents of the public sector companies will be left in the lurch. Also, the private companies insurance companies can exploit the public. Unless, the agents are given a better share of commission, the public sector insurance companies won’t be able to survive. We have brought this to the notice of the authorities,” Sreenivasan said.
The agents also demanded that the four public insurance companies should be brought under one corporation, if they needed to survive the competition.
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