You may buy the LIC policy with the great hope that your agent will service you throughout the policy period. However, what if your agent left the industry or not providing you the proper service? How to change LIC Agent?
During a time of buying the policy, all insurance agents claim big promises like they always take care of you, any service related issues or ready to serve you in case of sudden demise of a policyholder. But the reality is different. The major problem in an insurance industry is quitting the profession of agents so fastly.
According to IRDA data 2013-14, LIC’s total agent strength was 11, 95, 916 and private companies’ agents strength was 9, 92,584. During 2013-14 FY, LIC added 3.41 lakh agents, but lost 3.18 agents and private insurers added 3.83 lakh agents, but lost 3.40 lakh (All data as of 31st March, 2014). Therefore, agents added by the insurance industry during this period are 7.25 lakh but 6.59 lakh agents left the business.
This is too high and there are many reasons to it like reduction in commission, business competition or got a better profession than this. This is the story about the agents who left the business. However, what about agents who are in the industry, but doing it as a part-time profession?
We may find a majority of agents do this professionally as part time. Hence, in such high attrition rate and agents not committing full time to their service, there is a huge possibility that the policyholder may not get proper service from agents.
Do remember that whether your agent provides you service or not or if he is in the same profession or not, he receives the commission as and when you pay the commission. Therefore, a majority of insurance agents does not care for after sales service. However, few take care of their clients as a goodwill gesture and to garner future business.
As of now, there are no such rules set either by the respective insurance companies or from the IRDA regarding change of agent. However, if we go with the news item published about LIC Agents Portability, then I think it is a right move. I doubt whether this facility already launched or not. Because, there is no such link available on LIC portal or any such official declaration from LIC.
If it is really introduced then sing this facility, if you are not satisfied with the service of an agent, you can switch agent exactly like switching health insurance policy, mobile number portability or changing an adviser in mutual fund investment