Blackberry messenger-BBM for Android, iOS devices by this weekend

Blackberry's BBM is coming to mobiles running Android and iOS during this weekend. Only issue is this would be available for user of Android 4.0 and above and iOS6 and iOS7

Smartphone maker Blackberry on Thursday announced it will provide its popular chat application BlackBerry Messenger (BBM) for devices running Android operating system (OS) from 21st September and for Apple iPhone users from 22nd September.


In a statement, the mobile handset maker said, “BBM will be available as a free download for Android smartphones running Ice Cream Sandwich and Jelly Bean (Android 4.0 and later version) beginning at 7 am EDT (Eastern Daylight Time) on 21st September. BBM for iPhones running iOS 6 and iOS 7 will become available for each market on the App Store schedule of 12:01 am local time on 22nd September.”


Android users in India will be able to download BBM from their Google Play Store on their phone from 4.30pm onwards on same day.


BBM, the first instant messaging application for phones, now has more than 60 million monthly active customers on BlackBerry alone, and majority use BBM an average of 90 minutes per day, the statement said.


As per market research and analyst firm IDC, over 5 million out of 6.1 million smartphones shipped to India in January to March 2013 period were Android phones. Apple’s iPhones constitute a very small number in Indian smartphone segment.


BBM customers collectively send and receive more than 10 billion messages each day, nearly twice as many messages per user per day as compared to other mobile messaging apps, it added.


RTI Judgement Series: How prosecution will be impeded if there were no sanction to prosecute?

In cases where sanction for prosecution is not given there would be no ground to claim that any prosecution would be impeded and mere apprehension is not enough, the CIC said. This is the 175th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application

The Central Information Commission (CIC), while allowing an appeal, directed the Public Information Officer (PIO) and director of Ministry of External Affairs (MEA) to provide file noting of matters where sanction of prosecution has been sought for Indian Foreign Services (IFS) officers, after severing the names of witnesses or sources as per the provisions of Section 10 of the Right to Information (RTI) Act.


While giving the judgement on 30 December 2011, Shailesh Gandhi, the then Central Information Commissioner said, "...in cases where sanction for prosecution is not given there would be no ground to claim that any prosecution would be impeded. For claiming exemption under Section 8(1)(h) of the RTI Act it has to be clearly shown that the providing the information would impede the process of prosecution and mere apprehension is not enough."


Mumbai resident Kishanlal Mittal, on 6 October 2010, sought from the PIO of Department of Personnel and Training (DoPT) information regarding prosecution against officials from the Indian Administrative Service (IAS)/Indian Police Service (IPS) and Indian Foreign Services (IFS). Here is the information he sought under the RTI Act...


(a) Kindly provide information with file notings about the pending cases of sanction of prosecution against IAS/IPS/IFS and other officers who require prior sanction for prosecution. The said information should include all correspondences received so far regarding the issue with file notings of alt concerned.

(b) Kindly provide copies of guidelines for awarding sanction of such prosecution.

(c) Kindly provide information on average time taken for providing acceptance/rejection of prosecution.

(d) Kindly provide details with file notings on number of prosecutions sanctioned or rejection since 2005 onwards.

(e) Kindly provide information on funds/schemes sanctioned for development of RTI in various states.

(f) Kindly provide information with file notings regarding sanction of staff/officers in Central Information Commission.

(g) Kindly provide minutes of meetings and other correspondences with file notings for the appointment of Information Commissioners/Chief Information Commissioner in


(h) Kindly provide details of compliance of section 4 by DOPT. IF the information is available on website, kindly provide separate web-link of each of the subsections of section 4(1)(a) & (b).


Since the PIO did not provide any information, Mittal, the applicant filed a complaint before the CIC. The Commission issued a notice to the CPIO of MEA (to whom the RTI application was forwarded by PIO of DoPT on 6 January 2011).


In his reply to the notice, the CPIO of MEA on 16 August 2011, stated, "The RTI application was received in this Ministry on 11 January 2011 from DoPT. Inputs were received from the concerned Division of the Ministry. However, it was felt that these inputs were not specific to the queries raised by the applicant in his application. Accordingly, the matter was reconsidered in consultation with the Division, and a response was finally sent to the applicant on 26 July 2011. It is emphasized that efforts have been made to furnish relevant information to the applicant, within the framework of the RTI Act, 2005, which was complex in nature. A copy of the response is enclosed, for kind information, of the Commission."


Similarly, the CPIO of Ministry of Personnel, Public Grievances and Pensions, in his reply to the CIC on 16 August 2011, stated...


"I am directed to refer to your letter No. CIC/AD/C/201 l/000793/SG dated 14 July 2011 on the subject cited above and to state that a copy of the complaint dated 7 March 2011 was not received. Nonetheless it is stated that a separate complaint dated 10 December 2010 on the same issue of non-providing of information has already been considered by the Commission to pass orders in Case NO. CIC/SS/C/2010/000661 dated 11 January 2011, in response to which the explanation of the undersigned CPIO and the information has already provided to the applicant/ complainant had been provided to the Commission vide letter No1 42/3/2009-AVD.1 dated 25 February 2011. A copy each of the said orders and the aforesaid communication dated 25 February 2011 are enclosed herewith for ready reference.


2. To recapitulate the facts relating to the matter, it may be stated that the request dated 6 October 2010 of Kishan Lal Mittal sought information on eight distinct points out of which only four points were required to be responded to by the undersigned CPIO. The applicant had sought the following information which was partially the concern of the undersigned CPIO:

(a) Information with file notings and correspondence about the pending cases of sanction for prosecution against IAS/IPS/IFS and other officers who require prior sanction for prosecution

                (b) Guidelines for awarding sanction of such prosecution

(c) Information on average time taken for providing acceptance/rejection of prosecution

(d) Details with file notings on number of prosecutions sanctioned or rejection since 2005 and onwards.


3. The request was duly responded to vide letter of even number dated 14 October 2010. Further the request also being related to IPS & IFS officers, a copy of the request was also forwarded to the Ministry of Home Affairs (MHA)and the Ministry of Environment and Forests (MoEF) for being duly responded to in respect of such officers by the concerned administrative Ministries directly. The information specific to the Department of Personnel and Training (DoPT) and specific to the Desk manned by the undersigned CPIO was provided to the applicant including copies of instructions containing the guidelines relating to sanction for prosecution, as sought by him.


4. As regards point (c) of the request, the applicant was informed of the various intermediate stages of the processing of the matter for accord of sanction so as to enable him to appreciate the causes of the perceived delays in processing of such cases.


5. However with respect to the last part of the request required to be responded by the undersigned CPIO it was regretted that the notings of the said files could not be provided as there is reasonable apprehension that information, as has been sought by him would impede prosecution of offenders. Further reasonable apprehension was also conveyed that providing of such information may endanger the life or physical safety of persons - witnesses (including those against other accused) or identify the source of information or assistance given in confidence to the law enforcement agency. Thus the said part of the request was denied in view of provisions of sections 8(g) and 8(h) of the Right to Information Act, 2005. But at the same time, the details of the sanctions accorded/denied since 1 January 2005 was provided however. It was also informed to the applicant that providing of the file notings of such large number of cases would also disproportionately divert the resources of the single man desk handled by the CPIO and in this regard his attention was invited to provisions of section 7(9) of the Right to Information Act, 2005. A copy of the said response of the undersigned CPIO dated 14 October 2010 is also enclosed herewith for ready reference.


6. It may also be pertinent to state that the applicant/complainant also preferred an appeal dated 16 November 2010 against the information provided to his vide this Department's letter dated 14 October 2010 inter alia indicating the by IFS he had implied to seek information about officers of the Indian Foreign Service. Accordingly while disposing of the appeal a copy of the request of the applicant was also forwarded to the Ministry of External Affairs (MEA). The position as regards 'other officers' was also clarified to indicate that the undersigned CPIO was not a custodian of such information. It was indicated that the statutory provision brings within its ambit all 'public servants' and as such the matters relating to proposals of the Investigating agencies are considered by respective administrative Ministries/ Departments. The desk manned by the CPIO handled cases relating to IAS officers serving the State or the Centre. In respect of other officers, the appellant was advised to approach the respective administrative authorities individually for such information.


7. The appellant had also referred to the specific response relating to the average time taken in disposing off such cases to point out that cases had been pending since the year 2000 to suggest that the said information was incorrect. In this regard also his perception was clarified referring to the details of such case which led to such perception being formulated. The applicant also suggested that the term 'IFS' used by him had been misconstrued to imply 'Indian Forest Service' as he had desired information with respect to 'Indian Foreign Service' officers. The appeal was also disposed off by the appellate authority on 6 January 2011, conveying the due clarifications to his observations and also providing him with the list of details of IAS officers 'here competent authority had taken due decision during the past five years though the same was already in the public domain being hosted on the official website of the Department] and also forwarding a copy of his request to the Ministry of External Affairs. It may be pertinent to state here that the Commission had also sought clarification from the Ministry of Environment and Forests in this regard thus implying that the perception of the undersigned CPIO to construe IFS to mean Indian Forest Service was not incorrect. A copy of the appeal and response thereto is also enclosed herewith for ready reference.


8. It will be appreciated that the very fact that an appeal had been preferred by Kishanlal Mittal on 16 November 2010, referring to the response dated 14 October 2010 of the undersigned CPIO, implied that the RTI request of the complainant was timely responded to. This fact indicates that the complainant on 7 March 2011 i.e. the date of his complaint has not right informed the Commission of having received the reply from the undersigned CPIO though by that time he had already preferred the first appeal specifically referring to the reply of the undersigned CPIO.


9. Thus, if at all there is any deficiency in the information as received by the complainant, the same is due to reasonable and statutory restrictions as indicated in para 5 of this communication, in so far as the information pertained to the undersigned CPIO of which one was custodian of. The other information could not have been available with the undersigned CPIO and could not have been provided by the undersigned and accordingly the concerned Public Authorities were requested to directly provide such information to the applicant for which due endorsements were made to the concerned authorities and the applicant was also advised to approach the concerned administrative units for information in respect of 'other officers'.


10. In view of the above facts, the Commission is requested to take an appropriate view in the mater based on the said facts, copies of the documents enclosed herewith as also the fact that a complaint on the same aspect has already been considered and disposed off by the Commission, as indicated in the opening paragraph of this communication.


In his reply on 26 July 2011, the CPIO stated...


1) No request for sanction for prosecution of IFS officer is pending.

2) Information cannot be provided in terms of Para 10 of DoPT OM No. I /4/2009-IR dated 5th October, 2009 providing that the Public information Officer is not supposed to create information: or to interpret information: or to solve the problems raised by the applicants; or to furnish replies to hypothetical questions.

3) The information cannot be disclosed under Section 8(1)(e)(h)&(j) of the RTI Act, 2005. The provisions relating to the information available in fiduciary relationship. Disclosure of which would impede the process of investigation and invasion of privacy respectively. Further. This information as relates to third party information, as provided under Section 11(1) of the RTI Act, 2005.


During the hearing, Mr Gandhi, the then CIC, observed that the information which has not been provided are the copies of the file notings in matter where sanction for prosecution has been sought. The PIO denied this information claiming that disclosing it would endanger the life and physical safety of the witnesses and sources of information and that it could impede prosecution also. Effectively the PIO was claiming exemption under Section 8(1)(g) & (h) of the RTI Act.


Mr Gandhi discussed with the PIO, how revealing the information could impede the process of prosecution. The Bench pointed out to the PIO that all names of witnesses or sources of information could be severed as per Section-10 of the RTI Act.


However, the PIO was not able to explain to the Bench that once the names of witnesses and sources are severed, how providing the file notings could lead to impeding any prosecution. The Bench also pointed out that in cases where sanction for prosecution was not given there would be no ground to claim that any prosecution would be impeded.


Not seeing any valid ground to claim exemption under Section 8(1) of the RTI Act, Mr Gandhi directed the PIO to provide file noting of matters where sanction of prosecution has been sought for IFS officers after severing the names of witnesses or sources as per the provisions of Section 10 of the RTI Act. The PIO will provide this information to the Mittal before 20 January 2012, the Bench said while allowing the appeal.




Decision No. CIC/AD/C/2011/000793/SG/16694


Complaint No. CIC/AD/C/2011/000793/SG



Complainant                                     : Kishanlal Mittal

                                                            Mumbai 400066


Respondent                                       : Manish Chauhan

                                                            Public Information Officer & Director (RTI)

                                                            Ministry of External Affairs

                                                            2025, "A" Wing, Jawahar Bhawan, 23-D,

                                                            Janpath, New Delhi


LIC agents’ last hullabol for selling traditional products before service tax regime

Traditional insurance products are set for a makeover from October. While there are some positives with new regulations, insurance agents are mis-selling existing products as a limited time opportunity. LIC agents have an additional incentive of service tax levy to push products before the deadline

From October 2013, Life Insurance Corporation of India (LIC) will charge policyholders service tax on the premium of traditional products. Until now, this tax was absorbed by the insurer. The service tax for traditional products is 3.09% of the first-year premium and 1.545% in subsequent years. In a recent announcement, Insurance Regulatory and Development Authority (IRDA) mandated that service tax will not be included in the contractual premium, but it is to be collected from policyholders separately. It is expected, that with service tax being charged separately from the policyholder, the bonus on the product would improve. But, LIC agents are using the service tax levy as an excuse to push sales before the October 2013 deadline.

Today, LIC agents are just as busy as they are during the tax-savings season due to additional reason i.e. existing traditional products will be discontinued after September 2013. While there are some positives for customers with new regulations like higher surrender value, lower agent commission and better insurance cover, agents are mis-selling existing traditional products as a limited time opportunity. An insurance agent of any company trying to shove life insurance policy, as a deal worth grabbing, is only talking baloney. After all, reduced agent commissions next month cannot be something agents look forward to.

According to one ethical LIC agent, “There is confusion among agents and hence the strategy is to go for the kill as they are unsure about their effectiveness to sell new traditional products next month. Moreover, we don’t know about the new products LIC has lined-up. But, if I hard-sell to my customers today, then how do I sell them products next month?”

Life Insurance Council, the industry body of life insurers in India, has proposed to Insurance Regulatory and Development Authority (IRDA) an extension of reasonable time for new traditional products regime to take place. V Manickam, secretary general, Life Insurance Council says that he has not asked for specific number of days/months of extension, but looks confident that insurance companies will get reasonable extension. IRDA making an extension before end of September will hardly be a surprise. In March 2013, IRDA had said that ‘standard proposal form’ guidelines would be effective from 16 February 2013. It has already been extended for life insurance companies to 1 April 2014. 

There are media reports about LIC portfolio reducing from 52 products to just seven next month plus four new launches. While LIC is tight lipped about new product details to agency force, it may be doing so to mop up as much premium this month as possible, before unveiling the products next month. While insurance companies are in the process of product re-filing, we have to see how many products IRDA can approve.

Here are some important changes for traditional insurance products coming next month:

  1. In case of regular premium insurance policies, a policy with a premium paying term (PPT) of five years will not pay more than 15% in the first year. Products with PPT of 12 years or more will have first year commissions up to 35% in case the company has completed 10 years of existence and 40% for the company in business for less than 10 years.
  2. Online policy sales and other direct sales of products will have no commissions and that benefit will be passed on to the policyholder.
  3. The minimum guaranteed surrender value for traditional plans has been pathetic. The existing guaranteed surrender value is 30% of all the premiums paid minus the first-year premium and is paid only if premiums have been paid for three years. This has been improved to some extent by the guidelines. For traditional plans with PPT of less than 10 years, the guaranteed surrender value will accrue after the second year. For PPT of 10 years or more, there will be a guaranteed surrender value after three years. This guaranteed surrender value will be 30% of total premiums paid. The surrender value becomes 50% between the fourth and the seventh years. The surrender value after seven years will have to be cleared by the regulator.
  4. The minimum death benefit for single premium policies will be higher of 125% of the single premium, or minimum guaranteed sum assured on maturity, or any absolute amount to be paid on death. For those with age more than 45 years, it will be 110% of the single premium.
  5. For regular premium products purchased by policyholder of age less than 45 years, it will be higher of 10 times the annualised premium or 105% of all premiums paid on date on death or minimum guaranteed sum assured on maturity, or any absolute amount to be paid on death. For those aged more than 45 years it will be seven times the annualised premium.

Read: IRDA guidelines impact commission and surrender value of traditional products



Amit Kumar Rai

4 years ago

if these policies like jeevan saral and jeevan anand are going to be closed. so what will happen to old jeevan saral and anand policies. i know it will continue but future profit giving in these schemes will less from lic compared to other active policies. if IRDA giving more time to bring new policies in place of all this, why they are not stopping selling of jeevan saral and anand after extension of times or giving of more times. also they ask lic to close all the previous policies of jeevan saral & anand with profit distribution as of now, because all old jeevan saral & anand policies and many other policies which are going to be closed will not be given more profit as their new policies.

Sanjay M Shah

4 years ago



4 years ago








Samira Patel

4 years ago

Thank you MoneyLife, your team is doing a good job in raising issues that affect the general investor in India. Your write-up makes complete sense and I partially agree with the fact that LIC Agents do mis-selling at the time of plan closures. However, me too being an Agent for more than 2 decades, I wish to explain why LIC agents suddenly become aggressive. If you carefully look at the LIC’s Agency force, you will notice that most of the Agents are pure Salesmen. A majority of them are under-graduates or graduates at the most. They do not understand much about what is going on in the financial market and how it will affect their business.

Since 2005 or 2006, the top management of LIC has become unethically aggressive. Every top ranking official wants to show growth in number of policies and premium in order to please his superiors. The Super boss of LIC wants to please his bosses sitting in Delhi. But it is not easy to show genuine growth overnight. They show growth in policies by engaging in splitting of policies. For example, if a policyholder wants to buy a Rs.10 Lakh Insurance policy, then split his policies in to 10 policies of 1 Lakh each or even 20 policies of 50,000 each. Unprofessional Agents take the responsibility of convincing the clients for getting recognition and prizes in the competitions floated by LIC on ‘Policy Basis’. The Agent will get additional incentives for selling more policies even though it is on a ‘Single Life’. The indirect beneficiaries are LIC bosses who show higher penetration of market in their tenure by using such tricks of trade. But the price of this is paid by the policyholders who get lower bonuses as the expenses of the Corporation rise on account of splitting of policies.

Coming to the ‘ Premium’ part of the story. Till a few years ago, LIC used to bifurcate the premiums as Regular Premium, Single Premium, Individual Pension Premium, Pension and Group Savings Premium, Group Insurance Premium, etc. But since the past few years they are showing consolidated Premium figures without any bifurcation. So now even Premium garnered by Group Insurance and Group Annuity Schemes are merged into the Annual Premium Collection figures shown by LIC. If LIC bifurcates each segment of premium as it used to do earlier, then probably everyone, including the policyholders will be in for a rude shock. The truth is that in comparison to earlier times, LIC is now faring poorly in traditional insurance policies where-in a client undertakes to pay renewal premium for 10 or 20 years. Therefore LIC is banking on single premium and group business to show growth on Premium.

As an LIC Agent I have attended many Agent’s meetings where the Branch Managers, Marketing Managers and even Sr.Divisional Managers misguide the Agency force into hard selling or unethical selling at the time of plan closures. We have witnessed it during the ULIP euphoria. Top ranking Managers would visit Branches like Financial Gurus confidently forecasting that the Sensex will attain 50,000 points and LIC being a dominant player in the stock market, the NAVs of its ULIP plans will zoom up beyond anyone’s expectation. They used to distribute pamphlets, brochures and colorful charts to prove their point. Fake news of Agents mobilizing Crores of funds in remote places in India was deliberately spread in order to motivate other Agents to sell ULIP plans. Special Competitions were launched with attractive prizes in order to lure Agents into selling ULIps. Many Agents succumbed to false propaganda and today have lost their credibility in the market as the NAVs of all ULIPs are faring badly.

Now we are facing the second phase of this madness. Senior Managers are quoting the Chairman declaring that the entire Corporation will retire on 30th September and will begin afresh on 1st October. They are tweaking the quote to explain to Agents that from 1st October, LIC policies will become unattractive as it will be loaded with Service Tax which a customer will not be in a mood to pay. Secondly, they are scaring the Agents saying that popular Plans will be withdrawn and Commissions will be slashed drastically. In such a scenario, how do you expect the otherwise un-informed or mis-informed Agency janata to react? They will slog as if its their last few days on the planet earth. Competitions are being floated with Cash prizes up to even Rs.50,000 on single premium policies. Earlier only Agents and Development Officers were paid Incentives. But since 2006 onwards, even Branch Managers and Marketing Managers are given Incentives in the form of expensive gifts like LED TVs, Holiday trips, Smart phones, Laptops, gift coupons, home appliances, etc. These managers try to make the most of it by using unethical sales practices and misguiding Agents and policyholders as their posting in a particular office is for a maximum period of 3 years after which they are transferred to some other place. This is precisely what happened during the ULIP euphoria. The Managers who promised us the moon is nowhere in sight. They just grabbed all the gifts and vanished to some other city. It is we the Agents who are bearing the brunt of policyholder’s wrath.

Friends, LIC is not what it used to be till the 1990s. Earlier, the top bosses were visionaries who carefully crafted LICs growth story. With just a 5 Crore grant from Central govt in 1956, they carefully built a multi-Lakh Crore financial giant with a formidable Sales force of about a million Agents. But today, the picture is exactly the opposite. Scams and Corruption have become common. If LIC in not brought on track soon, it may be forced to go the UTI way.
If reputed teams like MoneyLife can keep a check on financial institutions, then i am sure it will do a lot of good for the common man.



In Reply to Samira Patel 4 years ago

Thanks .What you said is 100% true. The Splitting of policy is termed as ODC. Definitely not beneficial for policy holder.Even 3 types of policies will be enough if the bonus rates are raised to 60 level from the present 48.Relaxation in 45+ years band on medical terms will do a world of good for LIC. Last but not the least, THE AGENT WORK FORCE on whose back the Organization has built Castle is not well taken care off. What ever percentage commission bla bla mentioned and given ,everybody knows how it is spent.There is no recognition for a 5 year or 10 year or a 15-20 years Agent who has been loyal to the corporation. No 5 year pay commission for them as to employees of LIC . Even if LIC pays starting with 2k/month for all 5 years completed agent as a recognition of his rendered service, LIC will grow manifold times in near future.


In Reply to Samira Patel 4 years ago

Thanks for sharing the information.

Aniruddha Sengupta

In Reply to Samira Patel 4 years ago

Kudos for sharing your views with forthrightness!

Ashish Anand Mahajan

In Reply to Samira Patel 4 years ago

Thanks Samira,
i m also an LIC advisor since so many years.

I m completely agree with YOU.
Now a days LIC agents r create a fobia to the clients as LIC is about to getting close.

They don't think that ''Every Change is Inevitable''.

I also asked to my clients to get the policy before 30 sep 2013 but not with wrong commitments.

Here are some good things that Policy holder can switch the exsisting policy in New Form with paying service tax, if it looks attractive to him.

So morally if the same product comes with less premium (as New Mortality Rate Chart is being implemented after 30 Sep 2013,) it's our moral responsibility to convert the existing one into new form.

Ashish Mahajan


In Reply to Ashish Anand Mahajan 4 years ago

Dear Mr Mahajan,

You said - Here are some good things that Policy holder can switch the exsisting policy in New Form with paying service tax, if it looks attractive to him.

Please explain how one can convert existing policy to new product from Oct 1?

You said - So morally if the same product comes with less premium (as New Mortality Rate Chart is being implemented after 30 Sep 2013,)

Will the new mortality rates be lower or higher after 30 Sep?

hitesh budhedeo

In Reply to Samira Patel 4 years ago

Many thanks to you for providing all details . I was forced to check online the details regarding s. tax & closure of policies ,as the agent i felt, was trying to misguide me.
Thanks once again


In Reply to Samira Patel 4 years ago

Dear Samira Patel,

Many thanks for your knowledgeable feedback!

Nikhil Dhami

4 years ago

People are being mislead by agents.

Thank You Money Life bring this to Notice. Service tax was any way being paid from policy holders pocket..Premium would increase with this change so do the bonus from LIC.


4 years ago

if any one want to purchess LIC policie...so he should wait for new policies or should buy any one of old policy before 30-09...from customer profit perspective

G Srikanth

4 years ago

This is definitely, to boom private insurance companies, our traditional products of LIC has been withdrawn in the name of Service Tax, Commission to agents etc.

Dilip Kokane

4 years ago

Dear Raj, Please check new commission rates of IRDA guidelines and compare with existing rates payable to LIC agents. You will find that the agent will get more commission after 30-09-2013, so why he will make hullabol? It is service tax issue and not our commission.If any doubt write me [email protected]
Dilip Kokane



In Reply to Dilip Kokane 4 years ago

Dear Dilip,

I hope you read the IRDA guidelines correctly. Today, LIC agents get 35% first year commission for traditional products irrespective of the policy term. Please explain how agents will get more commission post Sep 2013?

New guidelines - In case of regular premium insurance policies, a policy with a premium paying term (PPT) of five years will not pay more than 15% in the first year. Products with PPT of 12 years or more will have first year commissions up to 35% in case the company has completed 10 years of existence and 40% for the company in business for less than 10 years.


In Reply to raj 4 years ago

what Dilip is saying is correct, there is effectively no change in Commission structure even after 1-10-13.
What you need to know is that today also the agent has a similar payout structure on lower ppt. What changes is the Surrender value payable to the client, BUT here does anyone buy an Insurance policy Traditional version so that he can surrender it?
Then he oe she is better off in ULIPS or Mutual funds!

Nikhil Dhami

In Reply to Dilip Kokane 4 years ago

Helo Dilip

Please read point no 2. there will be no commission for online sales and benefit will be passed on to policy holders.

i am sure this article has hit below the belt.

Thanks Moneylife for highlighting this.


Deepak Gupta

4 years ago

Other than pure term insurance, insurance in our country has remained a legal form of thuggery. And the industry - public+private - has always acted as a cartel of thugs.

So, this behaviour is not surprising. Kudos to Monelife for highlighting it.



In Reply to Deepak Gupta 4 years ago

This changes will be good, as I heard there will be term insurance can be clubbed to Mediclam policy. I think we whould wait and see what new policies these companies bring into market due to compitetion. I we can old policies and then if we can club mediclam with term insurance it will be good for us.

Nikhil Dhami

In Reply to Deepak Gupta 4 years ago

Sorry Deepak,

This response was meant for Dilip..

i can not recall this :)


Nikhil Dhami

In Reply to Deepak Gupta 4 years ago

Mr. Gupta..

Did you read point no 2. there will be no commission fro online sales.

I am sure this article has hit below the belt.



4 years ago



4 years ago

whether service tax will be levied on the old policies taken on or before 30/09/2013 by the insurer



In Reply to RAJENDRA P 4 years ago


Parag Mehta

4 years ago

Needed clarification on the hearsay that in case of mediclaim policies also, service tax is to be collected separately from policy holders and it will be on new policies taken subsequent of october 2013 and not on existing policies.
Kindly clarify.

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