Commission Term Insurance , Personal Accident and Mediclaim Policies

POSTED BY Nikhil Parchure ON March 26, 2011 11:31 am COMMENTS (7)

Hello All,

I would want to know what is tha average Commissions as percentage of premiums for below type of policies.

1) Term Insurance

2) Personal Accident

3) Mediclaim

When I contacted my advisor for review – renewal for these policies he say’s the commissions are very meager and was not ready to discuss more . I guess the very fact the money back , endowments and ULIPs are heavily sold by the advisors which has huge commission structures rather than the above valued ones.

Please help me out to understand the commission structure in these type of policies. I know Manish has already wriiten article on Commissions but want to know if the same percentage applies across all insurance products..


Nikhil Parchure



7 replies on this article “Commission Term Insurance , Personal Accident and Mediclaim Policies”

  1. Nikhil Parchure says:

    I belong to Pune .. Manish. Have you also moved in Pune. I can refer you to some of my friends who were looking for some advice, please let me know

    Nikhil Parchure

    1. Nikhil

      Yes I am in Pune now , You can send me the details about your friends to me at

      let me look at hte link you gave


  2. Nikhil Parchure says:

    Thanks Manish a lot for this information.
    I have personally planned on my insurance cover with help of reading your blogs but wanted to get commission information so that I can talk to the agent. Congrats on starting you FP service … you have educated people like me through your simple articles. Would it be possible to change my agent for any of policy if he/she is not providing enough information

    Also on another note if you have of agents/advisors you recommend based on your experience. It would be helpful to have it part of your website. Helps the wider community in longer run.

    1. Nikhil

      Which city do you belong to ? Let me know . Also I think you can complain to IRDA about the Agent behaviour and he can be change, not very sure on this .


  3. manickkam says:

    I would say “All the insurance will have some percentage of your money to the agents”

    But I want to know what gets you so much interested on this?
    As the term insurance cost itself is too less, none of the agents are recommending it to their clients, even though they get commissions on it.
    Also, its easy to break a term insurance compared to any other insurance policy.

    To see more on Agents are your friends? –


    1. Nikhil Parchure says:

      Thanks Manickkam for your inputs

      This thing has got me interested because my advisor is not willing to discuss to review insurance for coming FY 11-12.

      I have got Term , PA , Health insurance from him last year and I would like to discuss with him whether I should increase/reduce my coverage , whether if there is a better policy in market which fits my needs better.

      The advisor states that there is very less commission in those policies and does not want to dedicate time.

      So I am interested to know what is the commission for these policies so that I better knowledge in discussions with him.

      Nikhil Parchure

      1. Nikhil

        The commissions are 25% in first year ,7.5% in 2nd and 3rd year and 5% their after . Your agent attitude towards servicing clients is short sighed . Some one talking about quality of service based on commission is purely an old mindset . This might be reason he is still an agent and never moved up

        U can discuss your issue here this forum and we all can help you in deciding if you should increase or decrease your insurance cover .


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