Loans to Insurance Agents :

Subject to the above provisions, an insurance company can grant any temporary advances to an insurance agent upto the renewal commission earned by such agent in the year immediately preceding the year of grant. Where the Insurance Agent is newly appointed and has not earned any renewal commission, the total amount of loan which can be sanctioned cannot exceed one hundred rupees and the total amount of advances so made cannot exceed `10,000 (Note: these monetary limits were placed under the Insurance Act, 1938 which have been removed in the Insurance Bill. The only limit as per the Bill would be the restriction of advance to the preceding year’s renewal commission)