The second-biggest non-life insurance provider in India is the National Insurance Company. With a strong market presence in both the northern and eastern parts of the nation, it is among the oldest insurance businesses in India. Its product line consists of numerous general insurance policies that are available to a diverse range of customers from various societal segments. So, see below the National Insurance Agent Commission Chart 2025.
How to Become a National Insurance Company Agent:
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Becoming an agent for National Insurance Company Limited (NICL) is a great opportunity if you’re looking to start a career in the insurance sector. Here’s a step-by-step guide:
Check Eligibility:
Age: Minimum 18 years old.
Education: At least 10th pass (may vary by state or product type).
Basic Communication Skills: Ability to explain policies clearly and assist customers.
Contact NICL or Their Divisional Office:
Reach out to the nearest National Insurance Divisional Office or visit their official website to apply for an agent position.
Submit Documents:
Prepare the following:
Identity Proof: Aadhaar, PAN card, or Voter ID.
Address Proof: Aadhaar, utility bill, or bank statement.
Educational Certificates: 10th or 12th pass certificate.
Passport-Size Photos.
Complete Training:
As per IRDAI guidelines, you’ll need to complete:
50 hours of training for fresh applicants.
75 hours of training if you plan to sell both life and general insurance products.
Training covers insurance basics, company products, and customer service practices.
Pass the IRDAI Exam:
After training, you’ll need to pass the IRDAI Licensing Exam to get certified as an insurance agent. The exam is conducted online and tests your knowledge of insurance products and rules.
Get Your License:
Once you pass the exam, NICL will help you obtain your IRDAI Agent License, which authorizes you to sell NICL insurance policies legally.
Start Selling Policies:
After licensing, you’ll be registered as an NICL Agent, receive your agent code, and can start selling insurance products. You’ll earn commissions on the premiums collected from the policies you sell.
Maintain and Renew License:
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- Keep your license active by regularly meeting your sales targets.
- Renew your IRDAI license every three years, with additional training and exams if needed.
Perks of Becoming an NICL Agent:
- Attractive Commissions: Earn on new and renewed policies.
- Flexible Working Hours: Be your own boss.
- Incentives and Rewards: Get performance-based bonuses and recognition.
- Career Growth: Opportunities to become a Senior Advisor or Agency Manager.
National Insurance Agent Commission Chart 2025:
Here’s a clear and organized commission chart for National Insurance Company Limited (NICL) agents:
| Insurance Type | Commission Rate (New Policy) | Commission Rate (Renewal) |
|---|---|---|
| Life Insurance | 40% – 100% of 1st-year premium | 5% – 7.5% of renewal premium |
| Health Insurance | 15% – 25% of premium | 5% – 10% of renewal premium |
| Motor Insurance (Own Damage) | 10% – 15% of OD premium | 10% – 15% of OD premium |
| Motor Insurance (Third-Party) | 2% – 3% of TP premium | 2% – 3% of TP premium |
| Home Insurance | 15% – 20% of premium | 5% – 10% of renewal premium |
| Commercial Insurance | 10% – 20% of premium | 5% – 10% of renewal premium |
Factors Affecting the National Insurance Company Agent Commission Chart:
Type of Insurance Policy:
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- Life Insurance: Higher national insurance agent commission on first-year premiums (40%–100%), lower on renewals.
- Health Insurance: 15%–25% for new policies; renewal commissions are lower (5%–10%).
- Motor Insurance:
- Own Damage (OD): 10%–15% commission.
- Third-Party (TP): 2%–3% commission.
- Commercial Insurance: Varies based on risk, typically 10%–20% of premium.
Policy Term:
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- Long-Term Policies: Often provide better commission rates.
- Short-Term Policies: Lower commissions and quicker renewals.
Premium Amount:
Higher policy premiums generally lead to higher absolute commissions.
Renewals vs. New Policies:
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- New Policies: Usually have a higher commission rate.
- Renewals: Offer lower commission rates, but create steady income over time.
Add-Ons and Riders:
Commissions are often paid on additional coverages like zero depreciation, accident covers, or critical illness riders.
Agent Performance:
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- High-performing agents may receive bonus commissions, incentives, or recognition rewards.
- Consistent policy sales and renewal retention rates can increase total earnings.
Policy Duration:
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- Single-Year Policies: Pay commissions yearly.
- Multi-Year Policies: Often provide upfront commissions for the entire duration.
Product-Specific Commission Structures:
NICL sets different commission rates based on the type of product and IRDAI guidelines.
- Regulatory Changes: IRDAI policies directly impact commission caps and structures across different insurance sectors.
- Geographic Location: Urban vs. Rural: Commission rates can differ based on market demand and company strategy in different regions.
How to Calculate National Insurance Company Agent Commission?
The commission structure for agents of National Insurance Company Limited (NICL) is influenced by guidelines from the Insurance Regulatory and Development Authority of India (IRDAI). In April 2023, IRDAI removed the cap on commissions for agents and intermediaries across all insurance sectors, granting insurers the flexibility to set their own commission structures within their overall management expenses.
While specific commission rates for NICL agents can vary based on the type of insurance product and company policies, general industry practices offer some insights:
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Life Insurance Policies: Agents typically earn a significant upfront commission, ranging from 40% to 100% of the first-year premium.
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Health Insurance Policies: Commissions can range between 15% to 25% of the premium for new policies, with lower percentages for renewals.
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Property and Casualty Insurance (e.g., auto or homeowners insurance): Agents often receive commissions ranging from 10% to 20% of the premium for new policies, with reduced rates for renewals.
It’s important to note that these figures are indicative and can vary based on NICL’s internal policies, the specific insurance product, and the terms agreed upon with the agent. For precise and up-to-date information, agents and prospective agents should consult directly with NICL or refer to official communications from the company.
Additionally, agents are advised to stay informed about any further regulatory changes from IRDAI that might impact commission structures and to ensure compliance with all applicable guidelines.
FAQ:
Q. What is the commission structure for National Insurance agents?
- Life Insurance: 40%–100% on the first-year premium, 5%–7.5% on renewals.
- Health Insurance: 15%–25% on new policies, 5%–10% on renewals.
- Motor Insurance: 10%–15% on Own Damage, 2%–3% on Third-Party policies.
- Commercial Insurance: 10%–20% on premiums, with 5%–10% on renewals.
Q. How is the commission paid to National Insurance agents?
A. Commissions are paid on the premium amount collected for each policy sold. Payments are usually made monthly after the policy is issued and the premium is received.
Q. Do agents earn commissions on policy renewals?
A. Yes, agents earn renewal commissions — though rates are lower than first-year commissions, they provide long-term income stability.
Q. Are there bonuses or incentives for high-performing agents?
A. Yes, NICL often offers performance-based incentives, including bonus commissions, rewards, and recognition programs for agents who meet sales targets.
Q. Is there a cap on how much commission an agent can earn?
A. There’s no fixed cap on total commissions — earnings depend on the number of policies sold and premium amounts collected. More business means higher earnings.
Q. Do commissions vary by policy type?
A. Yes, commission rates differ based on:
Type of insurance (life, health, motor, commercial).
Policy duration (long-term or short-term).
Premium amount and policy add-ons.
Q. How can I track my commission payments?
A. NICL agents usually get access to an agent portal where they can monitor their policies, track commissions, and check payment status.
Q. Do I earn commissions on canceled policies?
A. No, commissions are not paid on canceled policies if a policy is canceled shortly after being issued, any advance commission paid may be adjusted.
Q. Can an agent sell multiple types of policies?
A. Yes! After getting the necessary IRDAI licenses, agents can sell life, health, motor, and commercial insurance policies.