Commission of Health Insurance Agent: How Much Can You Earn in India?

Introduction

With the rising demand for healthcare protection, health insurance has become a vital financial product for Indian families. This demand has opened up a lucrative opportunity for many as health insurance agents. But one of the most common questions asked is:
“What is the commission of  health insurance agent?”

In this blog, we break down the earnings, commission structure, and what influences how much an agent can earn in India.

What Is a Health Insurance Agent?

A health insurance agent is an authorized individual who helps customers choose and purchase suitable health insurance policies. Agents work either independently, for insurance companies, or under agencies and brokers. They guide clients, handle documentation, and often help during the claim process.

Commission of Health Insurance Agent in India

The commission is the primary income source for agents and is paid by insurance companies on the sale and renewal of health insurance policies.

👉 Individual or Family Health Insurance Policies:

• New Policy Commission: 15% – 20% of the premium

• Renewal Commission: 5% – 7.5%

👉 Group Health Insurance (Corporate Clients):

• New Business Commission: 7.5% – 15%

• Renewal Commission: 2% – 5%

💡 Note: Commission rates are regulated by the IRDAI (Insurance Regulatory and Development Authority of India).

Example: How Much Can a Health Insurance Agent Earn?

Let’s say an agent sells 10 individual policies per month, each with an annual premium of ₹20,000.

Monthly New Business Earnings:

• ₹20,000 x 10 = ₹2,00,000 in total premiums

• Commission @ 15% = ₹30,000 per month

• Yearly earning from new policies: ₹30,000 x 12 = ₹3.6 Lakhs

Next Year Renewals:

• ₹2,00,000 x 10 policies = ₹2,00,000 in renewals

• Commission @ 7.5% = ₹15,000

That’s recurring passive income in addition to new business!

What Factors Affect Agent Commission?

1. Type of Policy: Individual policies often offer higher commissions than group health plans.

2. Insurance Company: Some companies offer better rates or incentive structures.

3. Volume of Sales: Higher sales = higher income + bonuses.

4. Agent Level: Direct agents, POSP (Point of Sales Person), or corporate agents may have different slabs.

5. Performance Bonuses: Many insurers offer rewards, bonuses, and travel incentives for top performers.

POSP Agents and Online Brokers

Becoming a POSP agent (through IRDAI-approved brokers) allows agents to sell policies from multiple insurers. Though commissions may be slightly lower (due to sharing with the aggregator), POSP agents enjoy:

• Access to multiple product lines

• Digital tools and training

• Quick onboarding process

• Wide earning potential

How to Become a Health Insurance Agent

To become an IRDAI-certified agent:

1. Minimum Qualification: Class 10 or Class 12 (depending on region)

2. Complete IRDAI Training: 15 to 25 hours (depending on agent type)

3. Pass the IRDAI Exam

4. Register with an Insurance Company or Broker

Final Thoughts

The commission of health insurance agent offers both active income and long-term passive earnings through renewals. It’s a low-investment, high-return career path for those with good communication and networking skills.