The way insurance is MIS-sold in India.. with more than 65% commission on first year premium, how agents take ignorant customers on ride.. No body seems to complain and care.. If some extra incentive is offerred to Mutual Fund Distributor that too not on investor's cost but AMC bearing the expense.. heavens seems to have fallen.. Why such double standard .. Writer seems to be an insurance agent who is disturbed by phenomenal success of Indian Stock Market and Mutual Fund Industry in particular..
RE:RE:what abt Insurance
by sandeep on Jun 09, 2007 08:57 PM Permalink
Mr. Jha, I think you have got it wrong here. It's very much a known fact that insurance is not bought in India but rather sold and primarily for hefty commissions sometimes upto 50%. But that does not mean that misselling in the MF industry should be overlooked. Importantly the cost is ultimately borne by the investor NOT by the AMC. The commissions form part of the intial expenses or annual expenses that are borne by the investor. So ultimately its the retail investors like us who get hit the most. The writer is pretty much right in saying that SEBI needs to curb the menace. You seem to be a MF distributer who seems envious of high commissions paid to insurance agents.
