Irda Moots Panel To Recast Agent Commission

The Insurance Regulatory Development Authority (IRDA) has set up a committee to suggest ways to restructure commissions payable to agents of life insurance companies.

The committee has been set up with a view to not only infuse professionalism in agents but also to look into the possibility of giving graded commissions based on productivity of agents.

Currently, the agency commissions, at 40 per cent of the first premium in the first year, 7.5 per cent in the following two years and five per cent thereafter, does not allow for manoeuvrability by life insurance companies. Further a cap of 65 per cent is set on the commissions payable over the first five years.