Mis-selling: 'Agent's may lose licence'

With many life insurers not able to retain customers due to mis-selling, the regulator IRDA has proposed that licence of an agent be cancelled if 50 per cent of the policies sold by him/her are not renewed annually. Where average annual persistency ratio is less than 50 per cent, the agency licence would not be renewed, Insurance Regulatory and Development Authority (IRDA) said in a draft. Mis-selling refers to sale of a financial instrument without fully disclosing the pros and cons of it to an investor. In its proposal on persistency of life policies, IRDA says the minimum first-year premium ...

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