Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has set upper limits on payments of commission or brokerage on general insurance business.
For general risks in fire and engineering services, the maximum percentage of premium payable as agency commission and brokerage is 10 per cent and 12.5 per cent receptively. For the risks treated as larger risks under file and use guidelines, the same should be at 5 per cent and 6.25 per cent.
For motor insurance, the agency commission and brokerage has been fixed at 10 per cent. In marine hull insurance, they are at 10 per cent and 12.5 per cent. In marine cargo business, 15 per cent and 17.5 per cent while in all other businesses, the agency commission and brokerage would be at 15 per cent and 17.5 per cent respectively, according to a circular.
No brokerage can be paid in respect of an insurance where agency commission is payable and likewise, no agency commission can be paid in respect of an insurance where brokerage is payable, it added.
The norms would come into effect from October 1for insurances and renewals.
