With the aim to boost the pertinacity or continuity of life insurance plans by clients, the Insurance Regulatory and Development Authority (IRDA) has asked insurance brokers to sell more plans annually.

In an exposure draft on persistency of life insurance plans, the insurance regulator suggested various steps, comprising asking them to secure a minimum of 20 plans on an annual basis and a minimum initial year premium income worth Rs 150,000.

Where an insurance broker fails to attain either of the above, they would be obliged to accomplish in proportion more in either one to constitute for the deficit.

As per the exposure draft, an agent's certificate may not be renewed where the policy renewal ratio stand below 50%.

In addition, there shall be deterrence for lapsation in the form of commission restoration by the insurance firm, proportionately.

On the other hand, a part of the first year commission shall be withdrawn and be made up based on persistence in afterward years, the draft suggested.

In order to control fake agents, the insurance regulator also suggested that partners and close relatives of staff members of insurers shall not be engaged as agents by insurers.

Mr. R Ramakrishnan, a member of the Malhotra Committee on insurance reforms stated, "Let the regulator prescribe the persistency ratio of the insurer and not the productivity norms for agents. It is for the insurers to prescribe the productivity norms for their agents."

Moreover, IRDA demaned comments from Life Insurance Council, General Insurance Council, consumer organisations and general public by July 31, 2010 while excluding the agents.