What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (2023)

LIC – Love it or hate it, but you can’t ignore it! From TV ads to billboards to offices in every corner of India, LIC is everywhere. Like a giant elephant. Right in your face. You’d be surprised to find that the total number of lic agents in India 2022 stands at 1.32 million, which makes it even harder to ignore! And if you can’t figure out why that over-friendly uncle or that relative can’t stop gushing about the benefits of LIC policy, here’s the answer: LIC Agent Commission Rates are HIGH!

Table of Contents hide

1. Number of Life Insurance Agents in India

2. LIC Agent Commission Rate 2023

3. How is LIC agent commission percentage calculated?

4. Do LIC agents get monthly salary?

5. Basic Education Required for LIC Agent Exam

6. Who is the highest paid LIC Agent?

7. How much can I earn as a LIC Agent Commission in 2023?

8. Do LIC Agent pay first premium?

9. How long does LIC agent get commission?

10. Who pays more commission – LIC or Private?

11. What are the charges for becoming LIC Agent in 2023?

12. Steps to become a LIC Agent in 2023

12.1. Process to become LIC Agent:

13. Why become an LIC Agent?

14. What are the benefits for LIC agent?

15. How to become a LIC agent?

16. How to avoid LIC agent commission?

Number of Life Insurance Agents in India

The total number of life insurance agents in India is 24.42 Lakh (24,42,609), as on March 31, 2022. While LIC has 13,26,432 life insurance agents, the Private Life Insurance companies employ 11,16,177 agents.

Gender Segregation of Life Insurance Agents in India – 71% Male and 29% Female.

As on March 2022, close to 7 Lakh women are working as life insurance agents in India, of which LIC of India employs 48% of these women agents while Private insurers account for 52% of women agents.

Indian States with most number of LIC Agents as of March 2022 : Uttar Pradesh (1,61,646), Maharashtra (1,54,318), West Bengal (1,07,328), Madhya Pradesh (81,359) and Rajasthan (79,667).

What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (1)

Interestingly, while private life insurers recorded a growth of 1.35%, LIC recorded a decline of 2.02% in number of life insurance agents in 2021-2022.

How do lic agents earn this high commission – It is because commission is not just for a new policy sale, but even for policy renewals. FYI, LIC paid Rs 11,850.65 Crore as life insurance agent commission in India for Renewal Business in 2021-2022. Comparatively, the Renewal Commission paid by Private Insurers was just Rs 3,355.68 Crore.

In fact, the commission paid by LIC to agents for Renewal Business is more than commission paid for New Business.

LIC Agents Renewal Commission vs New Business Commission

InsurerRenewalNew Business
LIC Rs 11850.65 CrRs 11320.81 Cr
PrivateRs 3355.68 CrRs 9360.18 Cr

No wonder these 13 lakh total lic agents in India 2023 help the government insurer to lead the life insurance market share in India.

Fun Fact – LIC Employee Strength is just 1/10th of LIC Agents. The number of LIC Employees in India as of 31 March, 2022 stands at 1.04 Lakhs.

Now that we have initiated the lic policy agent commission talk, let’s deep dive into it and learn – How to become LIC Agent? How much lic agent get commission? Do LIC agents get a salary? What are LIC Insurance Agent Commission Rates in India 2023? How is it calculated? And everything else that you need to know lic agent commission details.

LIC Agent Commission Rate 2023

How much commission does lic agent get for each policy sale – New Commission Rate is 35%, while the Renewal Commission Rates are 7.5% and 5%.

An LIC agent commission per policy is 35% commission on the 1st year premium, 7.5% for 2nd and 3rd year and 5% commission till the policy ends.

Let’s look at the lic agent commission chart 2023

1st year35%
2nd & 3rd Year7.5%
4th year onwards5%

How is LIC agent commission percentage calculated?

For how much percentage lic agent get commission calculation, refer the below lic commission chart for agent 2023

What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (2)

Let’s understand how to calculate agent commission in LIC as illustrated above – You sell 60 policies in the 1st year. The premium per policy is Rs 10,000. The total premium value becomes 60*10,000 = Rs 6,00,000.

As a LIC Agent, you will earn 35% of total premium value i.e. 35% of Rs 6,00,000 = Rs 2,10,000 as the first year commission.

For the 2nd year and 3rd year commission, you’ll get paid 7.5% of the total premium value i.e. 7.5% of Rs 6,00,000 = Rs 45,000 each.

For the 4th year commission and thereafter, a LIC agent gets paid 5% of the total premium value i.e. 5% of Rs 6,00,000 = Rs 30,000 every year till policy ends.

How to check lic agent commission online?

Calculate how much money you can earn with lic agent commission calculator below

LIC Agent Commission Chart 2023 pdf download

lic commission chart for agent 2023 pdf download

What are the lic agent commission rates plan wise?

  • Commission Rate for New Endowment plan: 25%
  • Commission Rate for Term Plan: 25%
  • Commission Rate for Child Plans: 25%
  • Commission Rate for Health Insurance Plan: 25%
  • Commission Rate for Money Back plan: 20%
  • Commission Rate for Pension Plan: 2%

The LIC SIIP agent commission for SIIP Plan No. 852 (UIN No. 512L334V01) starts at 4% for first year, 4.50% for second and third year and 7.5% for the last year.

Refer LIC SIIP plan agent commission chart

Now that we’re discussing about life insurance commission for lic agent, let’s also find out the general, life and health insurance agent commission rates in India.

As per IRDAI guidelines, the maximum commission as a percentage of premium that is allowed for health insurance products offered by general insurers or stand-alone health insurers is as per the table below

Health Insurance agent commission rates India

Health Policy TypeCommission
Health-Group (Employer)7.5%
Health-Group (Non Employer)15%

For individual policies and non-employer group policies, health insurance agents get paid 15% of the premium value as the maximum commission, and for employer group policies, health insurance agents get paid 7.5% of the premium value as the maximum commission.

Motor insurance agent commission chart (Total is also referred as Comprehensive, OD is Own Damage and TP is Third Party)

Registration YearTotalTotal3rd Party3rd Party
Others 2-wheelOthers2-wheel
1st to 3rd15% OD 17.5% OD2.5%2.5%
From 4th15% OD
+ 2.5% TP
17.5% OD
+ 2.5% TP

Commission Rate for Life Insurance Single Premium Policies

Product TypeCommission
Individual Pure Risk products7.5%
One year renewable group pure risk5% of premium/Rs 10 L,
whichever is less
Group Pure Risk (including Group credit)5%
All individual life products except pure risk2%
Individual Immediate/ Deferred Annuity2%
Group Savings Variable Life Insurance2%
Group Fund based0.5% of premium/Rs 10 L,
whichever is less

Commission Rate for Life Insurance Regular Premium Policies

Product TypeCommission Commission
1st yr premiumRenewal
Individual Pure Risk40%10%
Premium payment term 5 years15%7.5%
Premium payment term 6 years18%7.5%
Premium payment term 7 years21%7.5%
Premium payment term 8 years24%7.5%
Premium payment term 9 years27%7.5%
Premium payment term 10 years30%7.5%
Premium payment term 11 years33%7.5%
Premium payment term 12 years + 35%7.5%
Individual Deferred Annuity/Pension7.5%2%
Group Pure Risk (Group credit) &
Group Savings Variable Life

General insurance agent commission chart (other than motor) Policies

Product TypeCommission
Fire [Commercial] (SI< Rs 2500 Cr)10%
Fire [Comm.] (SI> Rs 2500 Cr)5%
Miscellaneous – Retail15%
Miscellaneous [Comm.] / Group10%
Miscellaneous [Comm.] (SI> Rs 2500 Cr)5%

Do LIC agents get monthly salary?

No. There is no fixed monthly salary of a LIC Agent. The commission of lic agent solely depends on every policy sold.

Though the recent announcements for insurance industry in the Budget 2023, expect some income fluctuations as there might be fewer high value policy purchases.


The income from traditional life insurance policies (other than ULIP) issued on or after 1st April 2023 where the premium is over Rs 5 lakh is no longer exempt from tax. However, this will not affect the tax exemption provided to the amount received on the death of the person insured. It will also not affect insurance policies issued till 31st March 2023.

This may prompt people to avoid purchasing high value life insurance policies where the premium amount exceeds Rs 5 Lakhs, which will eventually affect an agent’s commission earned.

Did You Know – in 2021-22, the average number of life insurance policies sold by LIC agents annually was 15 compared to private insurers’ agent average of just 2 i.e. more than 7x.

While the average new business income for LIC agent for 2021-22 was Rs 3.94 Lakhs, for the private insurers’ agents, the average new business income stood at Rs 1.45 Lakhs.

Is LIC Agent salary fixed?

No. Since LIC Agents are not a permanent employee, they do not get a fixed salary. Agents working with LIC get paid on a commission basis. So, the lic agent salary per month varies for every agent.

Basic Education Required for LIC Agent Exam

You need to pass Standard 10th as basic requirement to become a LIC Agent in India. You also need to above 18 years of age to become LIC Agent.

Who is the highest paid LIC Agent?

Your ‘top 10 lic agents in India 2022’ or ‘lic top agent list 2023’ query will result in nothing as such reports are kept confidential.

As per an Economic Times report from few years back, Bharat Parekh and Ravi Jethani, earned Rs 4 Crore and Rs 3 Crore respectively as annual LIC top Agent Commission fees.

Some reports suggest that Mr. Parekh generated over Rs 200 Crore as premium fees, making him the top LIC agent commission earner in India.

As per a BBC report, Bharat Parekh has sold $324 million worth of life insurance for some 40,000 policies. He earns commissions on nearly 1/3rd of these policies.

Bharat Parekh is credited for selling the biggest single policy of the country in 2007-08 and he has been a life member of Million Dollar Round Table (USA) (Apex Body for Life Insurance Agents) since 1993.

And such high earning potential is the reason that ‘Bharat Parekh lic agent commission’ and ‘Ravi Jethani lic agent’ are two of the top searched lic agent queries on Google.

How much can I earn as a LIC Agent Commission in 2023?

While there’s no upper limit on lic agent income or how much commission do lic agents get, it all depends on how much business you can generate. You’re your own boss.

You don’t even have to work full time. The part time lic agent salary 2023 would be dependent on your business generating skills.

What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (3)

In 2021-2022, LIC paid Rs 23,171.46 Crore as commission fees to 1.3 million agents.

That’s an average of Rs 1.78 Lakhs per agent as commission on lic policy.

How to become MDRT in LIC 2023?

And when you earn big enough, LIC Agents can become part of the elite Million Dollar Round Table (MDRT), which is a global, independent association of the world’s leading life insurance and financial services professionals from more than 500 companies in 70 nations and territories.

What is MDRT in LIC?

LIC MDRT meaning is agents are eligible to become part of the prestigious Million Dollar Round Table, subject to fulfillment of annual salary membership requirements.

Membership fees for Million Dollar Round Table for LIC Agents in India – MEMBER ($600), COURT OF THE TABLE ($650) and TOP OF THE TABLE ($1150).

MDRT LIC Agent Salary Annual Membership Requirements 2023 for Agents in India is mentioned below

LIC MDRT criteria 2023 in India

CommissionRs 7,95,900Rs 23,87,700Rs 47,75,400
IncomeRs 13,78,500Rs 41,35,500Rs 82,71,000
PremiumRs 31,83,600Rs 95,50,800Rs 1,91,01,600

The lic mdrt commission 2023 figure ranges from Rs 7,95,900 to Rs 31,83,600, depending upon the type of table classification – Member, Court of Table and Top of Table.

Some of the mdrt lic agent benefits are access to global network of professionals, international training development programs and getting to meet high net worth individuals which can eventually result in bigger opportunities with more commission.

For LIC Agents who cannot make it to the MDRT, depending on the level of business the LIC agent achieves in a year, he / she can become a member of clubs such as the Corporate Club, the Chairman’s club among other local clubs. Members of such clubs get to attend seminars which are held at exotic locations – both international and domestic – each year.

Do LIC Agent pay first premium?

Apart from the lic agent commission on first premium of 35%, the renewal commission is where the real money is. So, look out when the agent says they will pay for the first premium from their own pocket because he/she understands the long game.

Surely out of embarrassment, you’ll pay up from the second year along and once you’re in, it’s difficult to get out because you’ve already invested too much in it.

So, you think it’s better to continue till the policy ends. And that’s how the agent makes money from the renewal business in the long run.

How long does LIC agent get commission?

While an LIC agent gets 35% commission on the first year premium, and 7.5% renewal commission for 2nd and 3rd year, the agent gets paid 5% commission till the policy ends.

Who pays more commission – LIC or Private?

As per IRDAI latest annual report, the state insurer paid Rs 23,171.46 Crore as LIC Agent Commission fee in 2021-2022 as against Private Insurers’ Rs 12,715.86 Crore commission fee.

LIC surely pays well, at least 3.5x more than the private insurers for the renewal business.

LIC Agent Commission Fee: Rs 23,171.46 Crore
New Business Rs 11,320.81 Cr | Renewal – Rs 11,850.65 Cr

Private Agent Commission Fee: Rs 12,715.86 Crore
New Business – Rs 9,360.18 Cr | Renewal – Rs 3,355.68 Cr

What are the charges for becoming LIC Agent in 2023?

The LIC Mumbai website lists the following fees for becoming a LIC agent –

a. LIC agent registration fees of Rs 150

b. Training Fee of Rs 150

c. IRDA LIC agent exam fees of Rs 500

In total, you need to pay Rs 800 as charges to become a LIC Agent in India.

Steps to become a LIC Agent in 2023

You can become a LIC agent in 5 simple steps

  1. Fill the contact form with basic details like Name, Mobile, Email, Date of Birth and City
  2. Submit the required documents
  3. Payment of Fees
  4. Training – Online / Offline
  5. Pass the IRDAI Exam
Process to become LIC Agent:

Visit your nearest LIC Branch Office and meet the Development Officer.

The Branch Manager will conduct your interview, and if found suitable, you will be sent to training at Divisional/Agency LIC Training Centre.

The LIC Agent training is for 25 hours and covers all aspects of Life Insurance Business.

After successful completion of offline training, an agent has to appear for Pre Recruitment examination conducted by IRDAI or the Insurance Regulatory and Development Authority of India.

After successful passing the IRDAI examination, you will be given an Appointment Letter and Identity Card to work as a LIC insurance agent at the Branch Office and you will be a part of the team under your Development Officer.

In fact, a LIC insurance agent with great ability and leadership can also become a LIC Development Officer in a Branch Office. Some LIC Agents go on to become Assistant Branch Manager Sales and higher marketing positions.

Why become an LIC Agent?

Of the many perks of becoming an LIC Agent, the most important one is the backing of India’s largest insurance company. Despite all the backlash it often receives, the market share of LIC is still intact and it continues to dominate the life insurance market share in India 2022.

By first year premiums collection, LIC Market Share in November 2022 stood at 67% of the life insurance market share in India.

As for the number of policies issued, LIC grabs 65% of the market share of life insurance companies India by end of November 2022.

Since India is a hugely under-penetrated market, there is a big potential to help people get insured and tap unlimited earning opportunities.

Insurance Penetration in India is just 4.2% in 2021-2022, compared to global insurance penetration of 7%.

Insurance Penetration is measured as percentage of insurance premium to GDP.


What are the benefits for LIC agent?

Life Insurance Corporation of India provides for special benefits, allowances and advances for lic agent joining its life insurance business. One of the perks is educational learning in the form of free training and seminars.

Apart from first year commission and the subsequent renewal commission, LIC Agents are paid Bonus Commissions, Term Life Insurance & Group Medical Insurance cover. LIC agent gratuity amount currently stands at Rs 3 Lakhs, upgraded from the previous Rs 2 Lakh, as per LIC Agents Regulations, 2017 notification.

Meanwhile, the insurance agents are currently staging a protest urging the Central Government to increase the LIC agent gratuity amount money to Rs 20 Lakhs.

What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (4)

LIC Agents are also entitled to Housing Loans at concessional rates, Pension Scheme, Group Personal Accident & Disability Scheme.

LIC Agents are offered Group Term Life Insurance Cover up to age 69 years and Group Mediclaim Insurance for Club Member agents up to age 85 years.

As for other perks involved, LIC pays Office Allowance along with various advances to buy laptop/computer and for purchase of 2/4 wheelers.

What is lic gratuity calculation formula for agents?

The lic agent gratuity calculation is done as per the Fourth Schedule of the Life Insurance Corporation of India (Agents) Regulations, 2017.

An LIC agent is eligible for gratuity :

(i) if he has worked continually and for fifteen or more qualifying years, and
(a) he is not below sixty years of age; or
(b) his agency ceases or stands terminated under any of the provisions of these regulations for any reason other than an expected reason; or

(ii) if he has been confirmed in his appointment, and-
(a) he dies while his agency is subsisting; or
(b) his appointment as agent is terminated under clause (m) of sub-regulation (1) of regulation 16.

Gratuity paid to a LIC agent shall be at the eligible rate for each qualifying year for the first 15 qualifying years and at half the eligible rate for the subsequent 10 qualifying years, provided the maximum amount of gratuity payable shall not exceed Rs 3 Lakhs.

How is eligible rate calculated for lic gratuity payment?

Eligible rate means:
(a) For agent who has worked for 15 agency years or more, 1/180th part of the aggregate of the yearly renewal commission earned in the qualifying years out of the fifteen agency years and
(b) For agent who has worked for less than 15 agency years, 1/12th of the amount arrived at by dividing the aggregate of the yearly renewal commission earned by the total number of agency years worked

For Example – Mr. X has been working as a LIC Agent for the last 25 qualifying years and the Total Renewal Commission earned during 15 years is Rs 10,00,000.

So, the Eligible rate is 10,00,000 / 180 = Rs 5555

Gratuity payable is

For First 15 years = 15 x 5555 = Rs 83,325

For Next 10 years = 10 x 5555/2 = Rs 27,775

Total gratuity payable is Rs 83325 + Rs 27775 = Rs 1,11,100.

What are LIC agent bonus commission rules?

To be eligible for bonus commission, the minimum business guarantee for lic agent is as listed below –

a. 6 lives and Rs 50,000 first year premium income OR

b. 12 lives OR

c. Rs 1,00,000 first year premium income

LIC Agents are exempted from the above rules to be eligible for bonus commission if he/she

a. working with LIC for at least 15 years and is at least of 55 years of age or

b. working with LIC for at least 15 years with renewal premium income of not less than Rs 2 Lakhs per year or

c. Continuously worked for not less than 21 years

Below is the lic agent club membership chart eligibility criteria

What Is LIC Agent Commission Rate In 2023? Gratuity | Bonus (5)

How to become a LIC agent?

You can apply for a LIC Agent license – https://licindia.in/agent/index.html

How to become LIC Agent in Mumbai – https://licmumbai.com/how-to-become-a-lic-agent-in-mumbai/

How to prepare for IC 38 exam?

To prepare for lic agent exam 2023, read IC 38 syllabus and study material in English, Hindi and other regional languages – https://www.insuranceinstituteofindia.com/web/guest/agents1

If you wish to download LIC underwriting rules 2023 pdf

What are lic agent termination rules 2023?

If the lic agent fails to bring the minimum business required in an agency year, his/her appointment stands cancelled. Such terminated lic agents can be reinstated by competent authority if satisfied that such failure was due to reasons beyond the agent’s control.

Other factors where agents can be terminated are briefly listed below

  • Found to be a Minor
  • Unsound mind
  • Guilty of criminal breach
  • Under judicial proceedings
  • Violation of Insurance Act 1938 and IRDAI Act 1999
  • Acts against the rules and ethics of LIC of India
  • Violates terms of appointment
  • Misusing of facilities provided
  • Becomes physically or mentally incapable of carrying out duties

You can read the entire termination of lic agent agency rules

How to avoid LIC agent commission?

Now that you’ve figured out how much do lic agents earn as commission, you’d know that you’re paying extra in premiums because of the agent’s commission cost involved. To cut down on the LIC Premiums cost as a customer, it’s better than you buy the policy by your own directly on the LIC website.

For lic bonus rate 2022-2023 and past bonus information – https://licindia.in/Customer-Services/Bonus-Information

And if you’re looking for ‘lic agent list with contact number pdf’, the search will result into nothing. The most you can find is some local directory i.e. lic agents in Mumbai or lic agents in Maharashtra list. The data might also be old and inaccurate.

For lic agent near me, it’s better to check for LIC Agent Locator List to locate your nearest lic agent – IRDAI Agent locator

Also, as a customer, if you’ve got unclaimed money in LIC, get in touch with your Agent now or check the LIC Unclaimed money amount online.

Alternatively, LIC of India has launched LIC Whatsapp service on 1st December 2022, where policyholders who have registered their insurance policies on the LIC Portal can use the following listed services on WhatsApp by saying ‘Hi’ on Mobile Number 8976862090.

List of services available on LIC Whatsapp Number 8976862090

  1. Premium Due
  2. Policy Status
  3. Bonus Information
  4. Loan Repayment Quotation
  5. Loan Eligibility Quotation
  6. Premium paid certificate
  7. Loan interest due
  8. ULIP Statement
  9. LIC Service Links
  10. Opt In / Opt Out Service

Can LIC Agents become Development Officers?

Yes, a LIC Agent can become a Development Officer through the Recruitment of Apprentice Development Officers. LIC ADO 2023 recruitment has a total of 1942 vacancies of which the number of Apprentice Development Officers recruited from LIC Agents Category shall not exceed 25% of the total number of vacancies for recruitment of Apprentice Development Officers.

Check LIC ADO Recruitment Notification 2023

For LIC MWP Act, read the process on how to buy MWP Policy for life insurance

Is LIC a 100% government?

No. Post IPO, LIC of India is no longer a 100% government owned company. In the past, the office of the President of India held 100% shares of LIC i.e. The President of India was the sole shareholder of 632,49,97,701 equity shares of LIC of India.

The President of India acting through the Ministry of Finance Government of India is the Promoter of the Life Insurance Corporation of India.

As of 31 December 2022, LIC is still a PSU undertaking with President holding 96.5% of LIC Shares, while Public holds the rest of the 3.5% shares.

Does LIC Invest in the stock market?

Yes, LIC’s Total Assets Under Management (AUM) stands at Rs 41.66 Lakh Crore as of September 2022. The LIC AUM is across equity and debt market.

Hope you found this ‘commission structure of lic agent’ post helpful!

Don’t forget to check out SBI Debit Card Free Insurance Cover, Star Health Senior Citizens Red Carpet Plan Review and Can NRI get life insurance in India?

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