In India, auto insurance is essential. Every vehicle operating on Indian roads is required to have a current insurance policy by the Motor Vehicles Act of 1988. Therefore, to lawfully drive their cars on Indian highways, car owners must purchase auto insurance plans. So, see below the motor insurance agent commission chart 2025.
Types of Vehicle Insurance Policies:
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Car insurance and two-wheeler insurance plans are the most often used types of vehicle insurance for individuals. Private and commercial auto insurance plans are two more categories for classifying auto insurance policies.
There are two types of insurance available for both private and commercial vehicles: comprehensive plans and third-party liability-only plans.
Third-party Liability-only Policy:
Liability of third parties According to the guidelines established by the Motor Vehicles Act of 1988, only insurance is required. Third-party liability is covered by this policy in the event that the vehicle results in any of the following damages:
- Murders a third party
- Causes bodily harm to another person
- Harms the property of third parties
The owner of the vehicle is financially responsible for paying the third party for the harm in any of the aforementioned situations. This financial responsibility is covered by third-party coverage, which also pays the car owner’s liabilities.
Comprehensive Policy:
Only third-party liabilities are covered by third-party insurance. Third-party insurance plans do not cover the cost of repairs if the car itself is damaged. This is the point at which a complete policy becomes necessary. Both third-party liability and vehicle-related damages are covered by the comprehensive plan. A comprehensive plan will cover car damage resulting from the following unforeseen circumstances:
- Natural catastrophes such as storms, floods, landslides, lightning strikes, earthquakes, etc.
- Man-made catastrophes, such as theft, arson, rioting, and malevolent deeds.
- Damages sustained during the vehicle’s transit
Third-party liabilities are protected under “third party cover,” while the vehicle’s damages are covered under “own damage cover.” As a result, the rates for “own damage cover” and “third party cover” in comprehensive policies vary. The total premium for the plan is calculated by adding the two premiums.
Commercial Vehicle Insurance Plans:
You can also sell insurance policies for commercial vehicles. For both passenger-carrying vehicles (PCVs) and goods-carrying vehicles (GCVs), TurtlemintPro offers auto insurance policies. To increase your clientele, TurtlemintPro offers you a greater selection of auto insurance plans that you may include in your portfolio.
Commission Under Vehicle Insurance Policies:
The following four elements determine the commission that a vehicle insurance salesperson is entitled to receive:
- Type of policy sold: Because comprehensive plans offer a wider range of coverage, their premiums are higher. Therefore, selling comprehensive insurance coverage can result in a higher commission for the automobile insurance agent. Conversely, third-party plans pay less for the commission of auto insurance agents because their premiums are lower.
- Vehicle type covered by insurance: four-wheelers are worth more than two-wheelers. Four-wheeler insurance is therefore more expensive than two-wheeler insurance. However, the commission rate for car insurance agents is higher for two-wheeler rates, allowing the agent to make good money by selling two-wheeler plans as well.
- Age of the insured vehicle: The insured value of the vehicle is determined by the vehicle’s age. The premiums and, consequently, the commission you can receive as a vehicle insurance agent are influenced by the insured value.
- The quantity of premium collected: Your premium will increase in proportion to the amount of premium you collect.
Motor Insurance Agent Commission Chart 2025:
The highest commission you can receive as a vehicle insurance agent for selling various kinds of auto insurance plans is as follows:
| Type of policy | Type of the vehicle | Age of the vehicle | The maximum rate of commission |
|---|---|---|---|
| Comprehensive policy | Four wheelers and other types of private vehicles | Any age | 15% of the own damage premium |
| Two-wheelers | 17.5% of the own damage premium | ||
| Comprehensive policy | Commercial Vehicles | 1-3 years | 15% of own damage premium |
| 4 years and above | 15% of own damage premium + 1.5% of third party premium |
||
| Standalone Third-party liability policy | All types of vehicles | Any age | 1.75% of the premium |
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