Ceiling of 15% for Insurance Agents Commission

The Insurance Regulatory and Development Authority (IRDA) prescribes ceiling of 15% for payment of agents’ commission. The exact rate of commission payable in a particular policy is to be decided by the insurer, which shall not exceed the ceiling prescribed by the IRDA. The Public Sector Undertaking insurers, in order to encourage younger population to go for health insurance and to maintain viable combined ratio for the health insurance segment, have revised agents’ commission on 2012 as per the details given below:

The move is not likely to have impact on the ability of senior citizen to buy health insurance as any reduction in commission will not amount to increase in premium rate. The actual commission, within the overall ceiling is decided annually by companies.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

DSM/RS/rs

(Release ID :95152)