Agent commission charts in India used to be tightly capped product-by-product. That era ended with IRDAI’s shift to a principles-and-limits framework. The most current, binding rules that govern what insurers can pay (to individual agents, corporate agents, brokers, web-aggregators, PoSPs, etc.) are the IRDAI (EOM including Commission) Regulations, 2024, effective April 1, 2024. These regulations consolidate commission policy under each insurer’s overall Expenses of Management (EOM) limits and require a Board-approved commission policy. Through 2025, this remains the operative regime. So, see below Insurance Agent Commission Chart in India (2025 Updated IRDAI Guidelines).
What Changed and What You Should Know in 2025?
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The Insurance Regulatory and Development Authority of India (IRDAI) introduced a major change in 2024, which continues into 2025, by replacing fixed commission slabs with a flexible, principle-based framework. Earlier, IRDAI prescribed product-wise limits for first-year and renewal commissions. Now, under the IRDAI (Expenses of Management including Commission) Regulations, 2024, insurers have the freedom to design their agent commission structures, provided they stay within overall EOM (Expenses of Management) limits and follow a Board-approved commission policy.
This shift marks a paradigm change from IRDAI dictating exact commission percentages to insurers having greater autonomy, subject to governance, transparency, and policyholder-interest safeguards. It means that in 2025, commission charts are no longer uniform across the industry but vary from insurer to insurer, depending on product mix, distribution channels, and business priorities.
Commission Now Lives Inside the EOM Umbrella:
IRDAI merged the earlier, separate “Payment of Commission” regime into a single regulation that governs insurers’ Expenses of Management, including commission. Insurers must:
- Keep commissions/rewards within EOM limits;
- Adopt and periodically review a Board-approved policy that lays down the structure, rationale, simplicity, and policyholder-interest safeguards for commission payments;
- Reflect the commission framework in their broader EOM management plan and business plan.
Insurers, not IRDAI Design the Detailed Commission Charts:
With the EOM regime, IRDAI doesn’t publish first-year/renewal commission slabs by product. Each insurer can tailor rates by line of business (life/general/health), channel (individual agents, corporate agents, brokers, digital), product type (term, traditional participating/non-participating, ULIP, health indemnity/benefit), premium mode (single/regular), policy term, persistency goals, etc., so long as total spend stays within EOM limits and the policy is Board-approved and in policyholders’ interest.
Disclosure and Governance Tightened:
The 2024 consolidation of regulations and accompanying master circulars put more emphasis on governance, disclosure, and policyholder protection (for example, Board oversight and periodic reviews). While these don’t prescribe numeric commission slabs, they set expectations on transparency and prudence around all operating spends, including commissions.
Bancassurance Possible Model Change on the Horizon (Proposal):
In 2025, IRDAI floated a reform idea for bancassurance: moving from insurer-paid commissions to a transaction-fee model paid by customers (with no preset ceiling) to reduce conflicts of interest. This is a proposal-stage (reported as being discussed with the government) and not yet a binding rule as of August 2025. Keep an eye on exposure drafts/notifications for finality.
How An Insurer Builds Its 2025 Agent Commission Chart:
Under the 2024 EOM+Commission regulations, a compliant insurer’s 2025 commission chart typically follows this logic:
Start with EOM Headroom:
Project premium, set operating budgets, and decide how much of EOM can be allocated to acquisition costs, i.e., commissions, rewards, contests, and channel support.
Board-approved Policy:
Define commission tiers by channel and product; link payout to persistency/renewal quality, mis-selling controls, and customer outcomes; ensure the structure is simple to administer and in policyholders’ interest.
Map Product/Channel Specifics:
Life: different targets for term vs. savings/participating vs. ULIP; often higher first-year, lower renewal, with persistency-linked rewards.
Health/General: mix of base commission plus add-ons for retail vs. group, and renewal emphasis for health portfolios.
Digital/web-aggregator/PoSP: typically learner-based but volume/persistency incentives built in. (Exact percentages vary by company.)
Controls, Reviews, and Disclosures:
Periodic Board review; fair allocation across business lines; ensure that any “rewards/benefits” (e.g., training, technology, co-op marketing) are also counted within EOM and follow the policy.
Insurance Agent Commission Chart in India (2025 Updated IRDAI Guidelines):
Here’s a consolidated commission chart based on available public data for the year 2025. See below the Insurance Agent Commission Chart in India (2025 Updated IRDAI Guidelines).
| Company | First-Year (Regular) Commission | Renewal Commission | |
|---|---|---|---|
| LIC | 28% (with bonus) / ~20% (without bonus) | 7.5% | |
| SBI Life Insurance | 30–35% (regular & term) | 7.5% for years 2 & 3; 5% from year 4 onward | |
| Industry-wide (Life Insurers Average) | 24% across all insurers (FY 2025) | 4% average renewal payout | |
| GoDigit | 57% (highest across industry) | — | |
| HDFC Life | 45% | — | |
| Bandhan Life | 42% | — | |
| Edelweiss Life | 33% | — | |
| Pramerica Life | 32.2% | — | |
| Bajaj Allianz Life | 26% | 3.01% | |
| Tata AIA | 20% | 3.63% | |
| Kotak Life | 11.2% | 2.67% | |
| SBI Life | — | 2.43% | |
| ICICI Prudential Life | 19.1% | 2.16% | |
| Birla Sun Life | 22.5% | 2.90% | |
| Canara HSBC | 15.1% | 2.97% | |
| PNB MetLife | 12.9% | 2.83% | |
| Shriram Life | 32.6% | 2.42% | |
| Edelweiss Life | 33.3% | 2.25% | |
| Others (Reliance Nippon, Aviva, Future Generali, Acko, CreditAccess) | Lower ranges (e.g., Aviva ~3.5%, Future Generali ~2.8%) | — |
Practical Implications For Agents and Insurers:
For Agents / Corporate Agents/Brokers / PoSPs:
- Expect company-specific commission grids that may evolve each year as business plans and EOM headroom change.
- Renewal quality/persistency usually matters more now—many insurers factor it into rewards.
- Keep an eye on channel policy updates and disclosure/training norms as governance tightens.
For Insurers:
- Calibrate acquisition costs to long-term value (persistency/claims experience), not just top-line growth.
- Maintain strong Board oversight, periodic policy reviews, and robust documentation to evidence that commission decisions are prudent and policyholder-centric.
Conclusion:
In 2025, the decisive shift is not a new set of fixed commission slabs; it’s the EOM-anchored, Board-approved design space that insurers must operate within. IRDAI’s 2024 consolidation made commissions part of a single, governance-heavy framework that prioritizes policyholder interest, transparency, and operational prudence. For agents, that means commission charts are insurer-specific and dynamic; for insurers, it’s a continuing obligation to prove that commission structures are sensible, simple, and within EOM. Watch for any formal notifications if the bancassurance transaction-fee idea moves from proposal to regulation; until then, the 2024 EOM, including Commission Regulations, remains the foundation of India’s commission landscape in 2025.
FAQ:
Q. Is there a universal maximum first-year or renewal commission in 2025?
A. No. IRDAI does not publish a single national slab now. Insurers set their own charts within EOM and must justify them via a Board-approved policy.
Q. Will my commission differ by product and channel?
A. Almost certainly yes. That’s the flexibility IRDAI granted—design by product, term, mode, channel, etc., provided the overall spend remains within the EOM limits and is in the policyholders’ interest.
Q. Are there special caps or exceptions (e.g., micro-insurance, government schemes)?
A. Some segments can have specific directions/circulars at times. Always cross-check IRDAI’s Notifications/Circulars section and your company’s compliance notes for scheme-specific rules.
Q. What about the bancassurance “transaction fee” news?
A. That’s a proposal under discussion in 2025; it is not the law yet. Until notified, banks and insurers continue under the EOM framework and their contracts.