Introduction
With the increasing need for medical protection, more people are buying health policies—making this the perfect time to become an insurance agent. If you’re considering this career or are just curious, one important question arises:
What is the health insurance agent commission in India?
In this blog, we’ll break down how health insurance agents are paid, what affects their commission, and how much they can potentially earn.
What is Health Insurance Agent Commission?
The health insurance agent commission is the percentage of the premium paid to the agent by the insurance company for selling and renewing health policies. This commission is the agent’s primary source of income and is regulated by the IRDAI (Insurance Regulatory and Development Authority of India).
Health Insurance Agent Commission Structure
The commission structure depends on the type of policy sold:
🧾 Individual or Family Health Insurance:
New Policy Commission: 15% to 20%
Renewal Commission: 5% to 7.5%
New Policy Commission: 15% to 20%
Renewal Commission: 5% to 7.5%
🧾 Group Health Insurance (for corporates/organizations):
New Policy Commission: 7.5% to 15%
Renewal Commission: 2% to 5%
New Policy Commission: 7.5% to 15%
Renewal Commission: 2% to 5%
📌 Note: Commission rates may vary slightly based on the insurance company, product type, and agent model (direct agent vs. POSP agent).
Example: How Much Can a Health Insurance Agent Earn?
Let’s take a practical example.
An agent sells 10 individual health insurance policies in a month, each with an annual premium of ₹25,000.
Monthly Premium Collected: ₹25,000 x 10 = ₹2,50,000
Commission @15%: ₹37,500 for that month
Annual Earning from New Policies: ₹4.5 lakhs
Next Year Renewals @7.5%: ₹18,750 passive income
This is recurring income that grows every year as more policies are renewed.
Factors Affecting Health Insurance Agent Commission
✅ Type of Policy: Retail policies offer higher commissions than group plans
✅ Agent Role: Independent agents often earn more than salaried sales reps
✅ Sales Volume: More policies = higher total commission
✅ Add-on Covers: Selling add-ons like critical illness plans can increase earnings
✅ Company Incentives: Many insurers offer performance bonuses and rewards
POSP Agents and Commission
A POSP (Point of Sales Person) agent works with online insurance aggregators or brokers and may earn slightly lower commissions due to revenue-sharing. However, POSP agents benefit from:
Access to multiple insurance brands
Quick digital onboarding
Pre-approved product portfolio
Marketing and tech support
Despite slightly lower margins, POSP agents can scale their business faster with less operational overhead.
How to Maximize Your Earnings as a Health Insurance Agent
📈 Focus on renewals to build long-term passive income
🏆 Meet sales targets to earn bonuses
🤝 Upsell and cross-sell other insurance products
💻 Use digital tools for faster policy issuance
📚 Keep learning about new policies and updates
📈 Focus on renewals to build long-term passive income
🏆 Meet sales targets to earn bonuses
🤝 Upsell and cross-sell other insurance products
💻 Use digital tools for faster policy issuance
📚 Keep learning about new policies and updates
Conclusion
The health insurance agent commission structure in India offers excellent earning potential, especially as healthcare awareness grows. Whether you work independently or as a POSP agent, this career can provide both active and passive income. With hard work and consistency, agents can build a stable, rewarding profession in the insurance industry.
