IRDAI has recently hiked the maximum commission payable to agents for two-wheeler motor insurance policies to 17.5% of the premium. Previously, it was 15%. On the other hand, the maximum commission payable for 4 wheelers such as cars and SUVs (sports utility vehicles) however remains unchanged at 15% for comprehensive motor insurance policies.
The insurance premiums have been hiked by 28% for most vehicle categories for 2017-18 and the revised rates came into effect from April 1.
The hike in motor third party (TP) insurance premium was about 28% for cars in 1,000-1,500 cc and those exceeding 1,500 cc. The hike in rates for two-wheelers in the 75-150 cc category was 16.3%.
The regulator revises premium rates every year after taking into account the number of claims made and loss ratio for insurers.
