Dealing a big blow to lakhs of insurance agents across the country, the Insurance Regulatory and Development Authority (IRDA) has proposed that reward to individual insurance agents should not be more than 20 per cent of first year commission or remuneration.
At the same time, the insurance regulator has recommended almost double reward of 40 per cent of first year commission or remuneration in case of insurance intermediaries like banks and corporate bodies acting as insurance agents.
According to insurance sector officials, earlier individual agents used to get up to 35-40 per cent as commission in the first year. “The commission will come down. The IRDA move will benefit customers but bring down the income of individual agents…,” said an official.