Insurance Regulatory and Development Authority (Irda) has fixed the limits on payment of commission and brokerage in the general insurance business, to be made effective from October 1.
The Irda circular stipulates that the maximum percentage of premium (final premium excluding service tax) payable as agency commission should be 10 and brokerage would be 12.5 for fire, industrial all risks (IAR) and engineering insurances, and 5 and 6.25 per cent for large risks.
The agency commission and brokerage limits for the motor insurance business have been fixed at 10 per cent. No agency commission or brokerage shall be payable for third party motor insurance.
The agency commission and brokerage limits will be 10 and 12.5 per cent respectively for marine hull insurance, and 15 and 17.5 per cent for marine cargo and other businesses.