Legal Question in Product Liability in India

we want to sell insurance products . we want to increase the sales by customer referral marketing. For that we give some commissions to customers by the mlm concept. we do not pay any additional charges . we want to know this is legal or not if it is legal what is the procedures to be done

Asked on 8/20/09, 3:30 am

1 Answer from Attorneys

Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Practicing MLM kind of business for increasing sales is not allowed in the insurance sector as per IRDA rulings,ofcourse you may be allowed to pay incentives for the field men.

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Answered on 8/20/09, 5:27 am

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