Multiple choice

Which of the following committees was in news recently for its recommendation that insurance agents be disallowed from drawing commission from premium paid by the policy holder from April 2011?

  1. R.N. Malhotra Committee

  2. C.S. Rao Committee

  3. N. Rangachary Committee

  4. D. Swarup Committee

  5. J. Hari Narayan Committee
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The six-member government panel headed by D. Swarup, Chairman, Pension Fund Regulatory and Development Authority had given its recommendations on common minimum standards for financial advisors (insurance agents).

The Swarup Committee had recommended, among others, that the insurance agents be disallowed from drawing commission from premium paid by the policy holder in a phased manner. Currently, an agent can get commission up to Rs 40 on every Rs 100 paid as first year premium by the policy holders. It goes on to decrease progressively to Rs 5 after the third year.

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