Commission Structure
Federal Bank Limited is a Composite Corporate Insurance Agent of Ageas Federal Life Insurance Co Ltd,
Niva Bupa Health Insurance Company Limited, Star Health & Allied Insurance Co. Ltd, Aditya Birla
Health Insurance Co. Ltd, Bajaj Allianz General Insurance Company Limited, Tata AIG General Insurance
Company Ltd and HDFC ERGO General Insurance Company Limited, under Corporate Agent license no.
CA0227 issued by Insurance Regulatory & Development Authority of India (IRDAI), and does not
underwrite the risk or act as an insurer.
List of empanelled insurance partner under different line of business i.e., Life, General and Health
SL No Company Name Products Offered
1 Ageas Federal Life Insurance Company Ltd Life Insurance
2 Tata AIA Life Insurance Company Ltd Life Insurance
3 Bajaj Allianz Life Insurance Company Ltd Life Insurance
4 Niva Bupa Health Insurance Company Ltd Health Insurance
5 Star Health & Allied Insurance Company Ltd Health Insurance
6 Aditya Birla Health Insurance Company Ltd Health Insurance
General Insurance, Health
7 HDFC ERGO General Insurance Company Ltd
Insurance
General Insurance, Health
8 Bajaj Allianz General Insurance Company Ltd
Insurance
General Insurance, Health
9 Tata AIG General Insurance Company Ltd
Insurance
General Insurance, Health
10 Chola MS General Insurance Company Ltd
Insurance
Insurance is purely a referral service and is provided on a non-participation basis. Marketing / Referring
the Insurance products by the Bank should not be construed as an advice, an offer to purchase or an
invitation or solicitation to undertake any activity or enter the transaction relating to the Insurance
Products. The contract of Insurance is between the Insurance Company and the insured, and not
between Federal Bank and the insured. As per RBI circular RBI/2009-10/225 dated November 16, 2009,
following are the details of maximum percentage of commission which Federal Bank as a Corporate
Agent is eligible to earn from sale of Insurance (both Life & Non-Life):
Life Insurance
Payable towards First Year Payable towards Renewal
Product Category
Commission Commission
Non-Linked (Protection) 75.00% 10.00%
Linked 45.00% 1.00%
Group Credit Life Insurance 30.00% NA
Endowment non-par 70.00% 3.00%
Endowment Par 75.00% 7.50%
Annuity 50.00% 2.00%
Group Term 5.00% NA
Health 30.00% 7.00%
Group Fund 5.00% 0.50%
Non-Life Insurance
Maximum Commission/
Line of Business (Other than Motor)
Remuneration Payable (%)
Property (Dwelling) 32.50%
BSUS – Fire 20.00%
Retail Health 35.00%
Group Health 35.00%
Individual PA 32.50%
Group PA 15.00%
PA – Loan linked 30.00%
Retail Travel 32.50%
Engineering 21.50%
Liability 25.00%
Marine Hull 20.00%
Marine Cargo 25.00%
Rural 20.00%
Workmen/ Employee Compensation 25.00%
Miscellaneous 16.50%
GMC (B2B) 7.50%
Renewal 25.00%
The maximum commission or remuneration as a percentage of premium that is allowed for general
insurance (motor) is as under:
Maximum Commission/ Remuneration Payable (%)
Motor (Comprehensive) Motor (Standalone TP)
Year 2-
Other than 2- Other than 2-
2- Wheeler Wheele
Wheeler Wheeler
r
Certificate of
22.5% (OD portion) 22.50% (OD portion) +
registration – 1st to 2.50% 2.50%
+ (Nil - TP portion) (Nil - TP portion)
3rd year
Certificate of
22.5% (OD portion) 22.50 % (OD portion)
registration – 4th year 2.50% 2.50%
+ 2.5% (TP portion) + 2.5% (TP portion)
onwards
The maximum commission or remuneration as a percentage of premium that is allowed for general
insurance (Long Term Motor Insurance):
Types of Long-Term Motor
Maximum Commission (%)
Insurance Policies
5 years Long term Stand- Alone Motor
Third Party insurance Policy (LTSAMTIP) for Nil
new 2- wheelers
3 years Long term Stand- Alone Motor
Third Party insurance Policy (LTSAMTIP) for Nil
new Private Car
i) 1st year of 5 years LTMPIP -
17.5%o (OD portion) + (Nil-TP Portion)
ii) 2nd year of 5 years LTMPTP -
10% (OD portion) + (Nil-TP Portion)
5 years Long term Motor Package
iii) 3rd year of 5 years LTMPTP
insurance Policy (LTMPIP) for new 2 -
- 10% (OD portion) + (Nil-TP Portion)
wheelers
iv) 4th year of 5 years LTMPTP- 5% (OD portion) +
(Nil-TP Portion)
v) 5th year of 5 years LTMPTP - 5% (OD portion) +
(Nil-TP Portion)
i) 1st year of 3 years LTMPTP -
15% (OD portion) + (Nil-TP Portion)
3 years Long term Motor Package
ii) 2nd year of 3 years LTMPTP -
insurance Policy (LTMPIP) for new private
10% (OD portion) + (Nil-TP Portion)
car
iii) 3rd year of 3 years LTMPTP
- 5% (OD portion) + (Nil-TP Portion)
Bundled cover with one year term for own
Bundled cover - 22.50% (OD portion) + (Nil-TP
damage and 5 years motor third party
Portion)
insurance policy for new 2 - wheelers
Bundled cover with one year term for own
Bundled cover- 22.50% (OD portion) + (Nil-TP
damage and 3 years motor third party
Portion)
insurance policy for new private car
Motor Commercial Vehicle
SL
Product Commission
No.
Up to 2 Ton - 20%
1 Motor Commercial Vehicle Package Policy - For Goods Carrying Vehicles
>2 Ton- 7.50%
Motor Commercial Vehicle Package Policy - For Passenger Carrying Up to 2 Ton - 20%
2
Vehicles up to 6 >2 Ton- 7.50%
Motor Commercial Vehicle Package Policy - For Passenger Carrying Up to 2 Ton - 20%
3
Vehicles more than 6 >2 Ton- 7.50%
Up to 2 Ton - 20%
4 Motor Commercial Vehicle Liability Policy - For Goods Carrying Vehicles
>2 Ton- 7.50%
Motor Commercial Vehicle Liability Policy - For Passenger Carrying Up to 2 Ton - 20%
5
Vehicles up to 6 >2 Ton- 7.50%
Motor Commercial Vehicle Liability Policy - For Passenger Carrying Up to 2 Ton - 20%
6
Vehicles more than 6 >2 Ton- 7.50%
Motor Commercial Vehicle Package Policy - Miscellaneous and Special Up to 2 Ton - 20%
7
Type of Vehicles >2 Ton- 7.50%
Motor Commercial Vehicle Liability Policy - Miscellaneous and Special Up to 2 Ton - 20%
8
Type of Vehicles >2 Ton- 7.50%
Note: The commission varies depending upon the Product in each category, tenure, amount of premium
and premium paying term. For Group and retail Insurance Products commission payable is as defined
by Insurance Regulatory and Development Authority of India (IRDAI) from time to time.
