Government Revises Commission Rates for Insurance Agents

March 3rd, 2025

Kathmandu – The government has introduced new commission rates for insurance agents, replacing the previous structure set under the Insurance Act 2049. The revised rates, approved under updated insurance regulations, now apply to various types of life insurance policies.

Under the new provisions, agents selling endowment and whole life insurance policies with a duration of 20 years or more will receive a commission of 25% in both the first and second years. From the third year to the tenth year, the rate will be reduced to 5% annually.

For policies with a duration of 15 to 19 years, the commission structure remains unchanged from the previous regulations. Agents will continue to receive 15% in the first year, 15% in the second year, and 5% annually from the third year to the tenth year. Similarly, for policies lasting between 10 to 14 years, the commission has been set at 15% in both the first and second years, followed by 5% annually from the third year onward.

In the case of insurance policies with a term of 8 to 9 years, agents will receive a commission of 10% in the first and second years, while the rate will remain at 5% from the third year until the policy expires. Meanwhile, for policies lasting between 5 to 7 years, agents will earn a 10% commission in the first year and 5% from the second year until the end of the term.

In addition, new provisions have been introduced for single premium insurance policies. Agents will now receive a maximum commission of 6% of the total insurance premium. In the case of term life insurance, the commission is capped at 10% of the premium, while for other types of insurance, the commission rate will be determined by the regulatory authority.

Previously, commission rates for endowment and whole life insurance were set separately. Additionally, different commission structures were applied based on whether the policy was profit-sharing or non-profit-sharing.

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