The recommendation of the Committee on Investor Awareness and Protection that insurance companies should stop paying commissions ("End of a system?" Oct. 21), if implemented, will prove detrimental to the interests of millions of insurance agents across the country. It is well known that in spite of technological advancements, people prefer to take insurance policies through intermediaries.

Insurance is always sold, not bought willingly, and the credit for making a customer understand the concept and save money for himself and his family goes to the agents. Thus their role in generating a huge volume of investible funds is commendable. They not only take care of the needs of customers but also act as a link between the insurance company and the policyholders.

K. Murlidar, Salem

The level of insurance in any country is directly proportionate to the literacy level. The role of the agent in educating the policyholders is important in India. It will be quite long before our country comes anywhere near the global standards in literacy. The importance of insurance is often explained to families here by sincere, ubiquitous agents.

V. Gopinath, Cuddalore

The Swarup Committee's proposal that the buyer of insurance policy should pay the agent a fee is welcome. It is an open secret that in many cases, insurance agents give up their commission to the customer for getting a policy. Sometimes, they pay the first premium. In such an unhealthy business environment, the proposal shows a new way to the insurance agents. A rule should be made saying that the insurance business should be done only through agents. The criteria for becoming an insurance agent should be standardised.

M.C.S. Pavan Kumar, Anantapur

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