Financial Daily from THE HINDU group of publications
Saturday, Jul 31, 2004
Financial Daily from THE HINDU group of publications Saturday, Jul 31, 2004 |
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Money & Banking
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Insurance Special discount: Insurance brokers seek compensation Our Bureau
Hyderabad , July 30 WITH the five per cent special discount being offered by the insurers directly to corporate houses posing a threat to the survival of the broking industry, the Insurance Brokers' Association of India (IBAI) has urged the regulator to evolve a mechanism to ensure adequate compensation. Addressing presspersons here on Friday, the IBAI President, Mr Bharat J. Boda, said nearly 80 per cent of the business for the broking industry came from the tariff segment and 20 per cent from the non-tariff area. In the absence of detariffing of all the sectors of insurance industry, the brokers stand to lose significantly since there was no compensation to them in lieu of the five per cent special discount directly being given to the corporate entities, he said. Nearly 70 per cent of business still falls under tariff regime, where the remuneration prescribed is disproportionately low, Mr Boda said. "Most of the corporate clients with a paid-up capital of more than Rs 3 crore shy away from availing themselves of the services of the brokers in respect of tariff business as they would lose five per cent special discount."
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