1- How the commission of the agent is calculated?
2- Is it - Premium * X%? Or some other method.
Where X = commission
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1- How the commission of the agent is calculated?
2- Is it - Premium * X%? Or some other method.
Where X = commission
Its % of the premium paid. I.e. if paid premium of Rs. 5000 and the commission rate is 10%, than commission paid to agent is
= 5000 * 10/100
= 500
Note - I have not taken VAT or any other tax amount in it.
Commission can be calculated by two ways -Quote:
Originally Posted by policy
1- Gross Rate = Premium X (Rate/100)
2- Net Rate = [(100 X Premium) / (100 - Rate)] - (Premium)
Abhijeet - You have missed "service tax" part. Service tax is added in the last in premium, so we need to deduct that to calculate the agency commission.