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Insurance

Insurance

Bank of India with its Insurance partner Star Union Dai-ichi provides diversified kinds of Insurance at specially reduced rates to its customers. Customers are requested to note that participation by them in insurance products is purely on a voluntary basis.

Commission for Insurance

As per RBI circular: RBI/2009-10/225 dated November 16, 2009, following are the details of the comparative commission earned by Bank from Insurance whose products are being distributed:

1. Commission in Life Insurance – 5 (b)

Table I – Single Premium

 
Sr No. Category of Life Insurance Product or Policy Maximum Commission/ Remuneration on Single Premium payable to insurance agent/ insurance intermediary

1

Single Premium

 

A

All individual life products except pure risk products 

2%

B

Individual Pure Risk products

7.5%

C

Individual Immediate/ Deferred Annuity

2%

D

One year renewable group pure risk insurance 

5% of premium paid during the year or Rs 10 lakhs whichever is less

E

Group Pure Risk (incl Group credit)

5%

F

Group Savings Variable Life Insurance

2%

G

Group Fund based

0.5% of premium paid during the year or Rs10 lakhs whichever is less

2. II – Regular Premium

Sr No. Category of Life Insurance Product or Policy Maximum Commission/ Remuneration on Regular Premium Products
First year premium RenewalPremiums

1

Regular Premium 

 

 

A

Individual Pure Risk

40%

10%

B

Individual Other than Pure Risk

 

 

 

i)

In respect of policies with premium payment terms of 

 

 

 

5 years

15%

7.5%

 

6 years

18%

7.5%

 

7 years

21%

7.5%

 

8 years

24%

7.5%

 

9 years

27%

7.5%

 

10 years

30%

7.5%

 

11 years

33%

7.5%

 

12 years or more

35%

7.5%

C

Individual Deferred Annuity / Pension

7.5%

2%

D

Group Pure Risk (incl Group credit) and
Group Savings Variable Life

7.5% (only on pure risk  premium)

7.5%

E

Government Scheme-Life-Health

As per Government Notification

As per
Government Notification

3. Commission from Health Insurance (General & Stand-alone Health Insurers) – 5 (c)

Sr No. Line of business Commissions/Remuneration
Health-Individual*  15% 
Health-Group (Employer-Employee only) - Annual  7.5% 
3 Health-Group (Non Employer-Employee groups – not formed solely for availing insurance as defined in IRDA Group Guidelines of 14th July, 2005) – Annual 15%
4 Health – Group (credit linked upto 5 years) 15%
5 Health-Govt Scheme  As specified in the Government Scheme/ Notification else as per Health - Group (Employer-Employee only) -           Annual segment 

*- Individual includes annual premium, 3 years single premium, 3 years regular premium

4. General Insurance (other than motor) – 5 (d)

Sr No. Line of business (Other than Motor) Maximum Commission
Fire-Retail  16.5% 
Fire-Corporate (Risks with S.I. < Rs 2,500 crs)  11.5% 
Fire-Corporate (Risks with S.I. > Rs 2,500 crs)  6.25% 
Marine-Cargo  16.5% 
Marine-Hull  11.5% 
Miscellaneous – Retail  16.5% 
Miscellaneous – Corporate/ Group* 12.5% 
8 Miscellaneous – Corporate (Engineering Risks with S.I. > Rs 2,500 crs) 6.25% 

* - Commission/ remuneration shall be payable as per Government Notification.

Motor Insurance – 5 (e)

Sr No. Line of business Maximum Commission/ remuneration payable to insurance agents/ insurance intermediaries
Motor (Comprehensive)* 17.5% for 2 wheelers and 15% for Non 2 wheelers
Motor (Stand-alone TP) 2.5%

* - Commission/ remuneration shall be payable only to the OD portion of the Motor (Comprehensive) policy