Please refer to our circular No. GEN/CIR/009/MAR-04 dated March 3, 2004
which contained scales of Agency Commission and Brokers Remuneration
pertaining to all classes of tariff and non tariff business except Marine
Hull business and which are already operational.
The Authority having examined the prevalent practice of scales of commission
payable to Direct Insurance Brokers and Insurance Agents alongwith the
recommendations made in the “Report of The Expert Committee to Examine
the Remuneration System for Insurance Brokers and Insurance Agents in
General Insurance Business” hereby specifies that the scales of Agency
Commission/ Brokers Remuneration shall now be regulated as per table
given below:
| Class
of risk |
Agency
Commission (% of final premium before application of service tax) |
Direct
Brokers Remuneration (% of final premium before application of service
tax) |
| Marine
Hull Business |
upto
10% |
upto
12.5% |
It is further clarified that owner's discount shall stand restricted to 10% wherever applicable as per Marine Hull tariff instead of 15% towards discount to owners and commission to Agents.
No special discount in lieu of Agency Commission/ Broker's Remuneration is payable on Marine Hull business, irrespective of the paid up capital structure. The Agent or Broker will be eligible for commission/ remuneration as per the scale indicated above.
The above orders come into effect from July 01, 2004 and shall be valid till 31st March, 2005.
(C S Rao)
Chairman