Insurance Agent Commission is different from company to company, here in this article we will learn about the insurance companies in India and how the Insurance Agent Commission is defined by companies.

First, let us understand who insurance agents are? so Insurance agents serve as the mediator between insurance companies and those who seek to purchase insurance policies. Insurance agents may focus on providing their clients with one particular type of insurance, or they may sell a variety of insurance policies. Various types of insurance include life, property, disability and health insurance.

There are 24 Life Insurance companies, 33 General Insurance Companies, most of them are providing health insurance, registered with IRDA(Insurance Regulatory and Development Authority of India) in India.

List of few top Life insurers:

  1. Life Insurance Corporation of India
  2. HDFC Standard Life Insurance Co. Ltd
  3. Max Life Insurance Co. Ltd.
  4. ICICI Prudential Life Insurance Co. Ltd
  5. Kotak Mahindra Life Insurance Co. Ltd.
  6. Aditya Birla SunLife Insurance Co. Ltd.
  7. TATA AIA Life Insurance Co. Ltd.
  8. SBI Life Insurance Co. Ltd.
  9. Exide Life Insurance Co. Ltd.
  10. Bajaj Allianz Life Insurance Co. Ltd and more you can find the full of list Life Insurance companies Here.

List of few top General insurers:

  1. Bajaj Allianz General Insurance Co. Ltd.
  2. ICICI Lombard General Insurance Co. Ltd.
  3. IFFCO Tokio General Insurance Co. Ltd.
  4. National Insurance Co. Ltd.
  5. The New India Assurance Co. Ltd.
  6. The Oriental Insurance Co. Ltd.
  7. United India Insurance Co. Ltd.
  8. Reliance General Insurance Co. Ltd.
  9. Royal Sundaram General Insurance Co. Limited
  10. Tata AIG General Insurance Co. Ltd. and more you can find the full list of General Insurance companies Here.

 

Commission Structure of Life Insurance Agents

Insurance Agent Commission is nothing but the commission that an Insurance Agent gets from the corporation. It varies from Policy to policy, and also the Commission of Insurance Agent is based on the term of the policy. therefore higher the term, the higher the commission will be.

The first Agent commission will be dependent on term of the policy and type of the policy (Endowment, Money back, etc). Here we have provided the information about the commission that an Insurance agent gets. The Insurance Agent Commission in Insurance is also based on the type of the policy which is available on the insurer’s website.

The maximal commission the Insurance Agent gets in the first year is approx 25% for 15 years, and above and the commission is cut down to approx 5% after the 4th year.

For Endowment Natured Policies with 15 years or more term the first-year commission of 25% and a Bonus Commission on the same to the extent of 10% on the First Yr Premium. 35% is payable if the Agent is eligible for Bonus. Otherwise, the maximal Commission payable to be 25 % on the First Year Premium. furthermore, the sale of Life Insurance gives repeated commission payments for one sale.

Insurance Agents Commission from 1st April 2017

Life insurance agent commission for Single-Premium Products:

CATEGORY 1st MAXIMUM COMMISSION PAYBLE
All Life Insurance Products(except Term Plans) 2%
Term Plans 7.5%
Immediate/Deferred pension or Annuity Plans 2%
1-year renewable Group Term plan 5% of premium paid or Rs. 10 lakhs(whichever is less).
Group Term plan 5%

 

Life insurance agent commission for Regular Premium Products:

CATEGORY 1st-year Renewal Commission
Individual Term Insurance 40% 10%
Individual Non-Term Insurance products
For 5 Year Policies 15% 40%
For 6 Year Policies 18% 7.5%
For 7 Year Policies 21% 7.5%
For 8 Year Policies 24% 7.5%
For 9 Year Policies 27% 7.5%
For 10 Year Policies 30% 7.5%
For 11 Year Policies 33% 7.5%
For 12 or more Year Policies 35% 7.5%
Individual Deferred Annuity/Pension 7.5% 2.0%

 

Health Insurance Agents Commission:

CATEGORY COMMISSION
Health Individual 15%
Health Group(Employer-Employee) 7.5%
Health Group(Non-Employer-Employee) 15%
Health Group(Credit linked up to 5 yrs) 15%

 

General Insurance (Other than Vehicle) Agents Commission:

CATEGORY Commission to Agents Commission to Intermidiary
Fire-Retail 15% 16.5%
Fire-Corporate(Risk SI<=25ooCr) 10% 11.5%
Fire-Corporate(Risk SI>25ooCr) 5% 6.25%
Marine-Cargo 15% 16.5%
Marine-Hull 10% 11.5%
Miscellleneouse-Retail 15% 16.5%
Miscellleneouse-Corporate/Group 10% 12.5%

Vehicle Insurance Agents Commission:

CATEGORY COMMISSION
MOTOR(Comprehensive) 15%
MOTOR(Stand-alone TP) 2.5%


Now Let us see How LIC Agent earns as a commission:

LIC Agent Commission Details

1st Commission Depend on the term of the policy and type of the Policy
1st Year Commission Commission payable on the 1st year premium.
Bonus-Commission Subject to conditions.
Renewal Commission Depend on the type of the policy and  Term of the policy.

Types of Agent Commission in LIC

 

YEAR 1st Type(MONEY BACK) 2nd Type(ENDOWMENT)
1st YEAR 15% 25%
Bonus Commission 40% Commission 40% Commission
2 years 10% 7.5%
3rd years 10% 7.5%
4th years onwords 6% 5%

Hope this is helpful for you.

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