The maximum commission limits as per statutory provisions are:
Agency commission for retail life insurance business:
7- 50% for 1st year premium if the premium paying term is more than 20 years
7- 10% for 1st year premium if the premium paying term is more than 15 years
7- 10% for 1st year premium if the premium paying term is less than 10 years
7% - yr 2 and 3rd year and 3.5% - thereafter for all premium paying terms.
In case of Mutual fund related - Unit linked policies it varies between 1.5% to6% on the premium paid.
Agency commission for retail pension policies:
7.5% for 1st year premium and 2.5% thereafter
Maximum broker commission - 30%
Referral fees to banks – Max 55% for regular premium and 10% for single premium. However in any case this fee cannot be more than the agency commission as filed under the product.
However, the above commission may be further subject to the product wise limits specified by IRDA while approving the product.
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