145;Check incentives, use technology146;

In an effort to contain malpractices in the way insurance agents are trained and examined...

In an effort to contain malpractices in the way insurance agents are trained and examined, the Life Insurance Council 8212; an association of life insurers mandated by the Insurance Regulatory and Development Authority IRDA to monitor insurance training institutes 8212; has recommended diluting the 100 hours training requirement for an agent to get a licence.

8220;Candidates applying for the agents examination are working people, because of which it becomes difficult for them to attend 100 hours of classes,8221; S.V. Mony, secretary general, Life Insurance Council told The Indian Express. 8220;In order to ensure that every candidate attends his training, we have asked the IRDA to reduce the number of hours, and are awaiting approval on the same,8221; he said.

This is one of the several recommendations given by a cross-section of experts from the life insurance industry in response to an The Indian Express series on the charade that agent training and examination has become.

Another proposal by industry experts was an overhaul of the incentive structure meant for insurance executives. At present, perks given to insurance executives like unit managers are influenced by the number of agents they are able to recruit. More agents generally means more policies sold, which means more business and a higher remuneration for the unit manager.

So, to turn in a higher number of agents, unit mangers often connive with people manning agent training institutes and examination centres to help their candidates clear the exam.8221;The incentive structure should place more emphasis on the qualification of agents, rather than numbers,8221; S.J. Gidwani, secretary-general, Insurance Institute of India said.

Some insurers, though, deny they try to increase their agent numbers. 8220;Our emphasis is not on the number of agents, but on the volume of business they bring,8221; Sam Ghosh, chief executive officer, Bajaj Allianz Life Insurance said. 8220;If a unit manager is turning out a large number of agents, but those agents are not selling policies, the executive won8217;t get any perks.8221;

To check leakages of question papers and cheating in exams, it is being suggested that agent exams be conducted only online. 8220;We had initially started an online examination. But then, companies providing online infrastructure opened up training institutes in another name, which led to a conflict of interest,8221; said Gidwani. 8220;However, we have an online examination facility in Mumbai and are planning another in Bangalore soon.8221;

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Lastly, experts advocated customers check an agent8217;s licence and going through the policy details before investing. According to Mony, 8220;Go through the plan illustration, which an agent has to show to a policyholder, and understand it. If policyholders are vigilant, they can call out agents who don8217;t know their subject and drive them out of business.8221;

In effect, therefore, until this sham gets sorted out, consumers are on their own.

What the industry suggests

8226; Relax the 100 hours training requirement

8226; Delink incentives of unit managers from the number of agents turned in

8226; Conduct agent exam only over the Internet

8226; Customers should ask agents what they are selling to them and why