The Insurance Regulatory and Development Authority of India (IRDAI) sets the maximum commission rates that insurance agents and intermediaries can earn across various general insurance products. These rates are designed to ensure transparency and fairness in the insurance sector. Below is a detailed breakdown of the current commission structure as per IRDAI guidelines:. So, see below IRDA general insurance agent commission chart.
How to Become an IRDAI General Insurance Agent?
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Becoming an IRDAI-licensed General Insurance Agent in India is a structured process designed to ensure agents are well-trained and qualified to sell insurance products ethically and effectively. Here’s a step-by-step guide:
Eligibility Criteria:
| Requirement | Details |
|---|---|
| Age | Minimum 18 years |
| Education | Minimum 10th pass |
| Nationality | Indian Citizen |
| KYC Documents | PAN, Aadhaar, Address Proof, etc. |
Step 1: Choose an Insurance Company:
- Contact a general insurance company (like ICICI Lombard, HDFC Ergo, SBI General, etc.)
- Apply to become an agent under their guidance
- They’ll initiate your registration with IRDAI
Step 2: Complete Training (Mandatory by IRDAI):
| Type | Duration |
|---|---|
| Online/Offline | 50 hours (1st-time agent) |
| Re-licensing | 25 hours (if renewing license) |
- Training is conducted by IRDAI-approved institutes or through the insurer
- Topics: Insurance basics, ethics, claim settlement, product types, regulations
Step 3: Pass the IRDAI Exam:
- Conducted by Insurance Institute of India (III)
- Mode: Online (Computer-Based)
- Format: 50 Questions | Duration: 60 mins | Passing Marks: 35/50
Topics Covered:
- General insurance products
- Regulatory environment
- Roles & responsibilities
- Customer handling & documentation
Step 4: Receive Your Agent License:
- Once you pass the exam, you’ll be granted a license by IRDAI
- License is valid for 3 years
- You can start selling general insurance policies (motor, health, fire, etc.) for the insurer you’re appointed with
Documents Required
- PAN Card
- Aadhaar Card
- Passport-size Photos
- Education Certificate (10th pass or higher)
- Address Proof
- Canceled Cheque (for commission credit)
Optional: Become a PoSP Agent
If you’re looking for a simplified digital route, you can become a PoSP (Point of Sale Person). This requires:
- Only 15 hours of training
- Focus on retail products like motor, health, travel
- License under one insurer only
- Sell policies using mobile apps (e.g., iPartner Pro, Turtlemint, PolicyBazaar Partner)
Earnings Potential:
- Agents earn commissions on every policy sold
- Commission rates are governed by IRDAI (e.g., up to 15% on health/motor policies)
- Additional income via bonuses, renewals, contests, and performance rewards
Why Become an Insurance Agent?
- Low investment, high income potential
- Flexible working hours
- Work from home or the field
- Help people secure their health, assets, and businesses
Would you like help registering with a specific insurance company or enrolling for the IRDAI training? I can guide you through the process!
IRDA General Insurance Agent Commission Chart (2025):
Motor Insurance:
| Policy Type | Maximum Commission |
|---|---|
| Motor (Comprehensive) – Own Damage (OD) | 15% |
| Motor (Standalone Third-Party – TP) | 2.5% |
Health Insurance:
| Policy Type | Maximum Commission |
|---|---|
| Individual Health Insurance | 15% |
| Group Health (Employer-Employee) – Annual | 7.5% |
| Group Health (Non-Employer-Employee) – Annual | 15% |
| Group Health (Credit-Linked, up to 5 years) | 15% |
Fire Insurance:
| Policy Type | Maximum Commission |
|---|---|
| Fire – Retail | 15% |
| Fire – Corporate (Sum Insured < ₹2,500 crore) | 10% |
| Fire – Corporate (Sum Insured > ₹2,500 crore) | 5% |
Marine Insurance:
| Policy Type | Maximum Commission |
|---|---|
| Marine – Cargo | 15% |
| Marine – Hull | 10% |
Miscellaneous Insurance:
| Policy Type | Maximum Commission |
|---|---|
| Miscellaneous – Retail | 15% |
| Miscellaneous – Corporate/Group | 10% |
| Miscellaneous – Corporate (Engineering Risks > ₹2,500 crore) | 5% |
Factors Affecting IRDA Agent Commission:
The IRDAI (Insurance Regulatory and Development Authority of India) regulates insurance agent commissions through a structured framework. However, several factors influence how much an agent earns in commission for each policy they sell.
Here’s a detailed breakdown:
Type of Insurance Product:
| Insurance Type | Typical Commission Range |
|---|---|
| Motor Insurance | 2.5% – 15% |
| Health Insurance | Up to 15% |
| Fire/Property Insurance | 5% – 15% |
| Marine Insurance | 10% – 15% |
| Miscellaneous Insurance | 5% – 15% |
Type of Policyholder:
| Customer Category | Impact on Commission |
|---|---|
| Retail Clients | Higher commission |
| Corporate Clients (Group) | Lower commission |
| Credit-Linked Policies | Often capped at 5-10% |
Policy Duration (Tenure):
- Longer-term policies may have fixed one-time commissions upfront.
- Short-term or annual renewals may provide fresh commission each time.
- Some policies (e.g., group health) are yearly but don’t offer renewal commissions.
Agent Type:
| Agent Category | Remarks |
|---|---|
| Individual Agent | Fixed rates as per IRDAI chart |
| PoSP Agent | Limited products, standard commissions |
| Corporate Agent/Broker | May receive slightly higher % |
| Web Aggregators | Commission structure varies |
Performance & Incentives:
Insurers offer additional incentives beyond IRDAI commissions:
- Monthly/Quarterly contests
- Bonus commissions for high-volume sellers
- Rewards like foreign trips, cash bonuses
IRDAI Regulations and Caps:
- IRDAI sets the maximum allowable commission for each product category.
- Companies cannot exceed this, but may offer lower commissions depending on profit margins or business strategy.
Sales Channel:
| Channel | Impact on Commission |
|---|---|
| Online/App-Based Sales | Lower commission, faster payout |
| Offline Physical Sales | Higher efforts, standard payout |
| Third-Party Aggregators | Shared commissions |
Underwriting & Claim History:
- Some policies (e.g., high-risk fire insurance) may have adjusted commissions due to risk and claim history.
- Agents may be rewarded for low-claim/high-retention clients.
Example:
Selling a car insurance policy with an OD premium of ₹20,000 could earn:
- Individual Agent: ₹3,000 (15% of OD)
- PoSP Agent: ₹2,500–₹3,000
- Broker/Corporate Agent: May get more, but share with employees
FAQ:
Q. What governs agent commissions in general insurance in India?
A. The Insurance Regulatory and Development Authority of India (IRDAI) regulates agent commissions through the IRDAI (Payment of Commission, Remuneration or Reward to Insurance Agents and Insurance Intermediaries) Regulations, 2016. These regulations mandate that each insurer must have a Board-approved commission policy, specifying maximum permissible commissions for various insurance products.
Q. Are there additional rewards or incentives for agents?
A. Yes. Insurers may offer rewards to agents, which are over and above the standard commission. For general insurance products, the reward should not exceed 30% of the commission paid to the agent. These rewards are typically based on factors like business volume, quality of business, and persistency.
Q. Do these regulations apply to all types of insurance products?
A. These regulations apply to most general insurance products. However, certain products like Micro Insurance and government-notified schemes may have different commission structures as specified by the respective guidelines.