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
|
|||
|---|---|---|---|---|---|
|
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 |
7.5% (only on pure risk premium) |
7.5% |
||
|
E |
Government Scheme-Life-Health |
As per Government Notification |
As per |
||
3. Commission from Health Insurance (General & Stand-alone Health Insurers) – 5 (c)
| Sr No. | Line of business | Commissions/Remuneration |
|---|---|---|
| 1 | Health-Individual* | 15% |
| 2 | 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 |
|---|---|---|
| 1 | Fire-Retail | 16.5% |
| 2 | Fire-Corporate (Risks with S.I. < Rs 2,500 crs) | 11.5% |
| 3 | Fire-Corporate (Risks with S.I. > Rs 2,500 crs) | 6.25% |
| 4 | Marine-Cargo | 16.5% |
| 5 | Marine-Hull | 11.5% |
| 6 | Miscellaneous – Retail | 16.5% |
| 7 | 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 |
|---|---|---|
| 1 | Motor (Comprehensive)* | 17.5% for 2 wheelers and 15% for Non 2 wheelers |
| 2 | Motor (Stand-alone TP) | 2.5% |
* - Commission/ remuneration shall be payable only to the OD portion of the Motor (Comprehensive) policy
