One of the mandatory insurance in India is motor insurance. Since every vehicle must have a valid motor insurance policy, the owner has to buy the motor insurance policies to cover their motors to run their car on the road legally. Due to this reason, there are many opportunities and attractive commissions for motor insurance agents they can grasp in every motor policy they sell. Note that the payment structure for this role is commission based and if you happen to sell the premiums, you will get a commission on them.
Almost everyone can become an insurance agent because there is not much qualification or experience to be an agent. You have to register with an insurance company, take a mandatory class, do an exam, and then start selling the policy. Now let’s look at how vehicle insurance agents get a commission in India.
How do vehicle insurance agents get a commission?
Based on the type of policy they sold
There are different types of policies the motor insurance agent can sell. The comprehensive policy has high premium rates because they cover a wide range of motor insurance products. The agents who sell the complete policy stand the chance of earning a higher commission. The ones who sold single or third-party policies get a low commission because these policies have lower premiums.
Based on the type of vehicle insured
Every vehicle type has a different policy premium. For example, the four-wheeler vehicle policy is different from the two-wheeler policy. You will find in most cases, the two-wheeler premiums have higher premium commissions than the four-wheeler premiums commission. To stand the chance of getting a higher commission, you will have to choose what type of vehicle you want to sell to get a higher commission. For example, some insurance offers a 17.5% commission on a two-wheeler and a 15% commission on a four-wheeler.
Age of the vehicle
The age of the vehicle determines how the motor insurance agent is going to get a commission. The brand new cars have a higher insured value than the old ones. Therefore if you got a client with a new car, it’s a better option for you because you will earn more than you could sell the policy for a client with an old vehicle.
The duration the client will use the policy.
The good thing with selling motor insurance policy products is that so long as you bring the clients to the insurance company, you will enjoy the commission so long as the clients continue to pay and use the policy. Therefore clients who consistently pay their premiums are an asset to you because they make you continue to get the commission in the long run?
Base on target
As a vehicle or POS agent, you will get the commission based on your collected premium. Though the different companies have different payment structures, the amount you get will determine your commission. Others have different targets. If, for instance, in some company, if you can sell policies that are worth $1000, you get a given commission percentage. If you sell more than $1000, your commission percentage keeps on increasing. Therefore the insurance company that uses this model helps you get a high commission rate whenever you meet the high targets.
In conclusion, the insurance agent commission you can get depends on the above factors. To get more commission, you have to understand this payment structure that the different insurance companies use. Note that other insurance companies use different commission payment structures; therefore, to maximize your opportunity as a motor or POS agent, you have to understand the company payment structure so that you can aim at the higher side.