Collection of insurance premium in installments !!

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sasankar boruah (Querist)
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25 October 2009 Sir,
Actually, i want to start a scheme of my own where i will sell insurance policies legally of any specified company with having regular authentisized license from them respectively. but if i collect the premium in full and go for the policy then less no. of person will accompany me in the run as the premium will be high enough....ranging from 12000/- and above.

So i thought of collecting the same in two or more installments for the first year only. After that the customer will pay the premium regularly on his own as when the time comes for him. Say , if the FYP is 12000/- then to get the benefit of my scheme one has to pay the joining amount will be 2500/- as advance for his policy and then he can work as a networker and earn the benefit of my scheme alongwith getting his policy when paid the balance in full.

thats what i want to know from you all whether i can collect the FYP in installments or not.? and what other licence i have to take and from where to run my new shceme related business?

please answer me again. my email id is sasankar.boruah@rediffmail.com

thanking you all ,
sasankar

Shyam Lal Naik

Shyam Lal Naik (Expert)
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26 October 2009 So far allowance of deferred payment facility to your clients is concerned, it is an arrangement between you and your policy holder.

How ever, the practice of allowing the policicy holder to work as a sub agent etc. in a scheme is not allowed as per IDRA and the various delegated legislation.