Contents
- About
- List of few top Life insurers:
- List of few top General insurers:
- Commission structure of Life Insurance Agents
- Insurance agent commission structure from 1st April 2017
- Single-Premium Products (insurance agent commission structure)
- Regular premium products (insurance agent commission structure)
- Health Insurance agent commission structure
- General Insurance Agents Commission structure
- Vehicle Insurance Agent Commission structure
- LIC Agent Commission details
- Types of agents commission in LIC
About
The commission earned by the insurance agent varies from company to company. Must read on who makes more money: Insurance agent or mutual fund agent. We will learn about insurance agent commission structure in India and how the Insurance Agent Commission is defined by the Companies. Learn how you can become an Insurance agent in India.
Insurance agents are the intermediaries between insurance companies and those who seek insurance policies. Keep reading on the types of insurance agents in India. These agents may sell the clients one type of policy or a variety of insurance policies. Must read on the guide to the tax return on Insurance agent. There are multiple insurance policies type: Health, Life, Property, Disability, etc. But which is better: buying insurance policy online or offline through an agent.
List of few top Life insurers:
- Life Insurance Corporation of India
- HDFC Standard Life Insurance Co. Ltd
- Max Life Insurance Co. Ltd.
- ICICI Prudential Life Insurance Co. Ltd
- Kotak Mahindra Life Insurance Co. Ltd.
- Aditya Birla SunLife Insurance Co. Ltd.
- TATA AIA Life Insurance Co. Ltd.
- SBI Life Insurance Co. Ltd.
- Exide Life Insurance Co. Ltd.
- 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:
- Bajaj Allianz General Insurance Co. Ltd.
- ICICI Lombard General Insurance Co. Ltd.
- IFFCO Tokio General Insurance Co. Ltd.
- National Insurance Co. Ltd.
- The New India Assurance Co. Ltd.
- Oriental Insurance Co. Ltd.
- United India Insurance Co. Ltd.
- Reliance General Insurance Co. Ltd.
- Royal Sundaram General Insurance Co. Limited
- 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
The insurance agents earn a commission that is earned from the corporation. The commission that is earned depends on various factors namely:
- It varies from policy to policy
- It also depends upon the term of the policy
The term of the policy and type of the policy (Endowment, Money Back, etc.)will determine the first agent commission. You can also read how you can sell insurance policy online. We will provide the information about the commission that an Insurance advisor gets. But what are the steps you need to take to establish your own insurance agency? The commission of the insurance agent is also based on the type of policy which is available on the insurer’s website.
The commission is adjusted according to these terms:
- For 15 years, the maximum commission an agent gets is approx 25%
- 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. Keep yourself informed on Life insurance vs mutual fund. 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. Learn what are the benefits you get being a PoS insurance agent.
Insurance agent commission structure from 1st April 2017
Single-Premium Products (insurance agent commission structure)
| Category | 1st Maximum Commission payable |
|---|---|
| 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 the premium paid or Rs.10 lakhs (whichever is lower) |
| Group Term plan | 5% |
| Category | 1st year | Renewal commission |
|---|---|---|
| Individual Term Insurance | 40% | 10% |
| 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 agent commission structure
| Category | Commission |
|---|---|
| Health Individual | 15% |
| Health Group (Employer-Employee) | 7.5% |
| Health Group (Non-Employer-Employee) | 15% |
| Health Group (Credit linked up to 5 years) | 15% |
General Insurance Agents Commission structure
| Category | Commission to agents | Commission to intermediary |
|---|---|---|
| Fire-retail | 15% | 16.5% |
| Fire-Corporate (Risk SI<=2,500 crore) | 10% | 11.5% |
| Fire-Corporate (Risk SI>2,500 crore) | 5% | 6.25% |
| Marine-Cargo | 15% | 16.5% |
| Marine-Hull | 10% | 11.5% |
| Miscellaneous-Retail | 15% | 16.5% |
| Miscellaneous- Corporate/Group | 10% | 12.5% |
Vehicle Insurance Agent Commission structure
| Category | Commission |
|---|---|
| MOTOR (Comprehensive) | 15% |
| MOTOR (Stand-alone TP) | 2.5% |
LIC Agent Commission details
| 1st commission | Depend on the term & the type of policy |
|---|---|
| 1st-year commission | Commission payable on the 1st year premium |
| Bonus-commission | Subject to conditions |
| Renewal Commission | Depend on the term and type of policy |
Types of agents commission in LIC
| Year | 1st Type (Money-back) | 2nd Type (Endowment) |
|---|---|---|
| 1st year | 15% | 25% |
| Bonus Commission | 40% commission | 40% commission |
| 2 year | 10% | 7.5% |
| 3 years | 10% | 7.5% |
| 4th Year onward | 6% | 5% |
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