10 commission amount and 20 incentive amount. Please, check and confirm this data
Kathmandu. An insurance agent is an integral part of the life insurance business. Moreover, more than 95 percent of the life insurance is sold through insurance agents while the same traditional insurance plans are still dominating the Nepali insurance market. In such a situation, the only thing that the life insurance company has to do to bring business is to appease the agent.
For selling insurance for a life insurance company, the insurance agent gets paid under two headings: 10 commission amount and 20 incentive amount. Since the agent’s commission amount is a certain percentage of the insurance fee and the business agent gets it directly, most people are aware of this matter, but even the people concerned with insurance are unaware of how the incentive money is distributed. So let’s talk about agent encouragement today?
अभिकर्ता incentives#
Nepal Insurance Authority (INSURANCE AUTHORITY) has made a provision that life insurance companies can spend up to 18 percent of the first insurance premium earned for the incentive of agents. That is, while issuing the policy, the company spends up to 18 percent of the first insurance fee to be paid by the insured for the incentive of the agent. Remember that this amount is a non-commission amount received by the agent, which is provided only from the first insurance fee paid by the insured, but the incentive amount cannot be distributed from the insurance fee from the second year.
अभिकर्ताको Structure
Before understanding how agent incentives are provided, it is important to understand the structure of the agent. There is a level of insurance agents. Usually this structure is of two or three layers. Name like agency manager, senior agency manager, agency coordinator are divided into two to three levels, which vary from company to company. Regardless of the name, the company has set the minimum limit of business to be brought annually, which, if it is fulfilled, it will get the position for the next one year and has to be renewed after meeting the business limit set by the company year after year. After getting this position, he can make a new person an agent under him. In this way, when an agent creates a new agent in his hands by crossing the limit of a certain sum assured, a two-level structure is maintained, in the same way, a company has arranged another level in the middle, which creates a structure of up to three levels.
प्रोत्साहन allocation
In order to facilitate the sharing of agent incentive funds, let us understand from the example of the agency manager above and the agent at the bottom of the agent structure of only two levels. As mentioned above, if an agent succeeds in becoming an agency manager by meeting the business limit set by the insurance company, then the agency manager will get additional benefits such as monthly salary, mobile expenses, and other facilities from the company for one year, which is the amount under the agent incentive.
Similarly, under the same structure, the agency manager also gets a certain percentage of commission in addition to the commission received by the agent while selling the insurance by an agent under one of the agency managers, which also falls under the incentive amount. Generally, even when the agent under him does business, the higher level agent gets 3 to 5 percent of the first insurance fee.
For example, in a company, there are three levels of agency manager, agency coordinator and agent, and if the agent at the lowest level of the structure brings insurance fees, then 6 percent of the incentive amount is received by the upper level agent, including 3 percent agency manager and 3 percent agency coordinator. If the agency manager himself brings the insurance fee, he gets 6 percent of the amount.
अन्य Under which title is distributed?#
In this way, in addition to the amount received from the commission and monthly benefits of the secondary level, the company provides various gifts to the agent for deducting the limit of fixed insurance fee on a monthly basis and also brings them on a tour of tourism and religious places. Apart from this, the company also organizes training and other recreational programs for agents from time to time.
Apart from this, companies also provide license renewal fee, term life insurance, vehicle facility to the agent. However, some of the facilities such as insurance agent loans, foreign travel, etc., received by the agents earlier, have now been banned by the regulatory body. All these expenses fall under agent incentives, which should not exceed 18% of the first premium the company has collected throughout the year.
सारांशमा #inline_tags_PLACEHOLDER_2##
The insurance company provides an incentive amount of up to 18% from the first insurance fee, which is spent on the agent at the higher level than the main agent who brings the insurance. A large part of the incentive money provided by the company goes to the agency manager’s commission and service facilities, while the remaining part is spent on the agent’s gift, tour, training, etc.
