INSURANCE INSIGHTS
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JULY 2017
40
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JULY 2017 |
INSURANCE INSIGHTS
DISCLAIMER
HDFC Bank Limited (“HDFC Bank”) is registered with Insurance Regulatory & Development Authority of India (IRDAI) as a Com-
posite Corporate Agent, IRDAI Registration No. CA0010 for distribution of Insurance Products. HDFC Bank currently has arrange-
ment with six insurance companies viz HDFC Life Insurance Co. Ltd, TATA AIA Life Insurance Co. Ltd. and Birla Sun Life Insurance
Co. Ltd for distribution of Life Insurance products, HDFC ERGO General Insurance Co. Ltd and Bharti AXA General Insurance Co
Ltd for distribution of General Insurance products and Aditya Birla Health Insurance Co. Ltd. for distribution of Health Insurance
products. HDFC Bank does not underwrite the risk or act as an insurer. The insurance is underwritten by respective Insurance
Companies. The contract of insurance is between the Insurance Company and the insured only, and not between HDFC Bank and
the insured. HDFC Bank is not responsible or liable for performance of any obligations under the contract of insurance. Insurance
is sold as a stand-alone product and not linked to any of the Banking products. Participation in Insurance is purely on a voluntary
basis. Purchase of Insurance is not a pre-condition of availing any of the banking products / services. Details related to product
features and fund performance published in this magazine are based on the input received from insurance companies. HDFC Bank
is not responsible or liable for any omission or commission in the information shared. For more details on risk factors, product details,
terms and conditions and exclusions please read the relevant product brochure carefully before conclusion of sale.
COMMISSION
Under corporate agency guidelines, HDFC Bank earns commission for distribution of Insurance products. The commission varies
depending upon the product in each category, tenure, amount of premium and premium paying term. A brief snapshot of the com-
missions earned by the Bank across varied product categories is given below.
Commission Range for Life Insurance
Category
First Year Commission
2nd year Renewal Commission
Min
Max
Min
Max
Health
2%
25%
0%
7.50%
Protection
2%
40%
0%
10%
Pension
2%
7.50%
0%
2%
Saving & Investment
2%
35%
0%
7.50%
Group Product
0%
2%
0%
0%
Govt Sponsored
Schemes
As per Govt Notification
As per Govt Notification
*For Group Products commission payable is 2% of the premium with a ceiling on the maximum payout as defined by Insur-
ance Regulatory and Development Authority of India (IRDAI) from time to time.
Commission Range for General Insurance
The maximum rate of commission payable is as below -
General Insurance (other than motor)
Sr. No.
Line of business (Other than Motor)
Maximum remuneration payable to
Insurance intermediary
1
Fire-Retail
16.5%
2
Fire-Corporate (Risks with S.I. < Rs 2,500 crs)
11.5%
3
Fire-Corporate (Risks with S.I. > Rs 2,500 crs)
6.25%
4
Marine – Cargo
16.5%
5
Marine – Hull
11.5%
6
Miscellaneous – Retail
16.5%
7
Miscellaneous – Corporate /Group*
(*Commission/ remuneration shall be payable as per
Government Notification.)
12.5%
8
Miscellaneous – Corporate (Engineering Risks with S.I.
> Rs 2,500 crs)
6.25%
