How the commission of agent is calculated?

[policy]

1- How the commission of the agent is calculated?
2- Is it - Premium * X%? Or some other method.
Where X = commission

[abhijeet06]

Its % of the premium paid. I.e. if paid premium of Rs. 5000 and the commission rate is 10%, than commission paid to agent is
= 5000 * 10/100
= 500

Note - I have not taken VAT or any other tax amount in it.

[PolicyWala]

1- How the commission of the agent is calculated?
2- Is it - Premium * X%? Or some other method.
Where X = commission
Commission can be calculated by two ways -
1- Gross Rate = Premium X (Rate/100)
2- Net Rate = [(100 X Premium) / (100 - Rate)] - (Premium)

[Master]

Abhijeet - You have missed "service tax" part. Service tax is added in the last in premium, so we need to deduct that to calculate the agency commission.