Mumbai: After some debate on its consultation paper, the Swarup committee submitted its final recommendations to the government on Wednesday.

Reforms push: PFRDA chairman D. Swarup. The final report’s recommendations make one allowance for pure life-term policies, which will be allowed to continue with the embedded commission. Madhu Kapparath / Mint

Despite vehement opposition from the insurance industry, the committee has stuck to its guns and recommended the no-entry load structure for insurance products. This report will now be forwarded to the high level coordination committee of regulators (which had appointed the Swarup committee), which will decide how and if at all these recommendations are to be implemented.

Persons close to the development said these recommendations are not very different from the consultation paper the committee had issued some time back.

While the final report continues to recommend the no-entry load structure for insurance products, the recommendations make one allowance for pure life-term policies, which will be allowed to continue with the embedded commission.

But even here, the commission will have to drop to 5% by 2011. And this will be allowed to remain until there is a substantial improvement in penetration in the country.

The insurance industry has been dead against the no-entry load structure for insurance products since the beginning. The insurance regulator maintains that these recommendations are not in the industry’s best interest and has said it will do whatever it takes to ensure that the recommendations are not implemented.

cnbctv18@livemint.com

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