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Thread: How the commission of agent is calculated?

  1. #1
    PolicyWala Newbie
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    Question How the commission of agent is calculated?



  2. #2
    PolicyWala Newbie
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    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.

  3. #3
    Super Moderator PolicyWala's Avatar
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    Quote Originally Posted by policy View Post
    1- How the commission of the agent is calculated?
    2- Is it - Premium * X%? Or some other method.
    Where X = commission
    Commission can be calculated by two ways -
    1- Gross Rate = Premium X (Rate/100)
    2- Net Rate = [(100 X Premium) / (100 - Rate)] - (Premium)

  4. #4
    PW Stalwart Master's Avatar
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    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.


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