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Product scoring may vary based on gender, age, policy tenure and sum assured.
The lowest age in the selected range is considered for price evaluation (e.g., 25 - 29)
Choose your insurance type
Select the policy you want to analyse. Each category uses a different commission structure.
Every premium you pay carries a commission paid to the agent, broker, bank, or other intermediary who sold you the policy.
This insurance commission calculator estimates that hidden commission, so you can review your policy with clear eyes, understand its terms and conditions, and take corrective action if needed.
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- A portion of every premium goes toward the cost of acquiring and servicing your policy, and commission is a key part of that cost.
- Commissions are usually front-loaded, highest in the first year (the first-year commission) and lower in the years that follow (renewal commission).
- Because it is embedded in your premium, the commission doesn’t appear separately on your policy document, which is exactly why most people are unaware it exists.
With effect from 1 April 2023, under the IRDAI (Payment of Commission) Regulations, 2023, these product-wise caps were removed. Commissions are now subsumed within an overall, company-level limit on Expenses of Management (EOM). Broadly, EOM is capped at around 30% of gross premium for life and general insurers, and around 35% for insurers exclusively carrying on health insurance business. Within these limits, each insurer’s board decides its own commission structure.
In practice, this gives insurers more flexibility in how much commission they pay on which products, making it more important than ever for policyholders to understand what is built into their own premium.
For the purpose of this calculator, commission is estimated on your premium net of GST, with the applicable GST removed first.
Frequently Asked Questions
What is an insurance commission calculator?
It is a tool that estimates how much of your insurance premium may have been paid as commission. Enter details such as your policy type, premium amount, payment frequency, and policy duration to get an approximate estimate.
Is commission an extra charge on my premium?
No. Commission is already included in the premium you pay. It is not charged separately.
Why is the first-year commission usually higher?
Insurance companies typically pay higher commissions when a new policy is sold. Commissions on renewals are usually lower.
Which insurance products usually have higher commissions?
Savings and investment-linked products, such as endowment plans, money-back plans, and ULIPs, generally have higher commissions. Pure protection products like term insurance and health insurance usually have lower commissions.
Is GST charged on insurance premiums?
For individual life and health insurance policies, GST was reduced from 18% to 0% from 22 September 2025. Premiums issued on or after that date do not include GST. Group insurance policies still attract 18% GST.
Does a high commission mean my policy is bad?
Not necessarily. A high commission does not automatically mean a policy is poor. What matters most is whether the policy meets your needs and financial goals.
How do commissions affect policy returns?
In savings and investment-linked policies, part of your premium goes toward commissions and other costs. This can reduce the amount invested and may lower your long-term returns.
Should I cancel a policy with high commissions?
Not without checking the details carefully. Cancelling a policy early can lead to losses and loss of insurance cover. Compare the costs and benefits before making a decision.
This calculator is provided as a tool to help you understand the potential commission component within your insurance premium. It is intended for informational and educational purposes only and should not be considered specific financial advice for your insurance decisions. The results are approximations based on assumed average commission rates and the prevailing regulatory and tax framework, and actual figures vary by insurer, product, and policy terms. We recommend consulting a qualified financial advisor for personalised advice specific to your financial situation.
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