Dear Comrades,
The
Insurance Regulatory and Development Authority (IRDA) prescribes ceiling of 15%
for payment of agents’ commission. The exact rate of commission payable in a
particular policy is to be decided by the insurer, which shall not exceed the
ceiling prescribed by the IRDA. The Public Sector Undertaking insurers, in
order to encourage younger population to go for health insurance and to
maintain viable combined ratio for the health insurance segment, have revised
agents’ commission on 2012 as per the details given below:
|
Age Group
|
Commission Rate
|
|
Below 35 years
|
15%
|
|
Between 35 to 45 years
|
12%
|
|
Above 45 years
|
10%
|
The move is not likely to have impact on the ability of senior citizen
to buy health insurance as any reduction in commission will not amount to
increase in premium rate. The actual commission, within the overall ceiling is
decided annually by companies.
This
was stated by Minister of State for Finance, Shri Namo Narain Meena,
in written reply to a question in the Lok Sabha today.
DSM/RS/rs
