Paying Insurance? Your Agent's Cut Stays Hidden

Most Indians buying insurance have no idea how much commission their agent earns. A new survey shows 8 in 10 buyers want upfront disclosure of agent fees — and 7 in 10 want those commissions capped.

Here's what happened: A survey of over 10,000 Indian insurance buyers found 82% want agents to disclose their commission upfront, before a policy is sold.. 7 in 10 respondents supported placing a cap on insurance agent commissions, signalling strong consumer frustration with current incentive structures.. Under existing IRDAI rules, agent commissions on life insurance can reach up to 35% of first-year premiums — a figure most buyers are unaware of..

What you should do: Ask your agent directly before signing: 'What is your commission on this specific policy?' — you are entitled to this information.. Compare identical coverage on aggregator platforms like Policybazaar or Ditto, which show costs without agent commission distortion.. Check if your insurer offers a direct online channel — buying directly (without an agent) can sometimes reduce the premium since commission costs are removed..

Buying a term plan directly from the insurer's website instead of through an agent can save 5–15% on annual premiums since no commission is embedded in the price.

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