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» Procedure for becoming an insurance agent in India
Procedure for becoming an insurance agent in India
The Insurance Act, 1938 lays down that an insurance agent must has a license under Section 42 of that Act. The license is to be issued by the IRDA. The IRDA has authorized designated persons, in each insurance company, to issue the licenses on behalf of the IRDA. The fee for the license, the manner of making an application, etc., have been described in the IRDA Regulations. A license issued by the IRDA will be valid for three years. The license may be to act as an agent for a life insurer, for a general insurer or as a "composite insurance agent" working for a life insurer as well as a general insurer. No agent is allowed to work for more than one life insurer or more than one general insurer.
The qualifications necessary before a license can be given are that the person (individual or corporate insurance executive) must:be at least 18 years old
have passed at least the 12th standard or equivalent examination, if he is to be appointed in a place with a population of 5000 or more, or 10th standard if otherwise
have undergone practical training for minimum 100 hours in life or general insurance business, as the case may be, from an institution, approved and notified by the IRDA. In the case of a person wanting to become composite insurance agent, the applicant should have completed at least 150 hours practical training in life and general insurance business, which may be spread over six to eight weeks.
have passed the pre-recruitment exam conducted by the Insurance Institute of India or any other examination body recognized by the IRDA.
These are reasons, due that person can be disqualified for having license:
He has been found to be of unsound mind by a court of competent jurisdiction
He has been found guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or attempt to commit any such offence.
HOW TO BECOME AN AGENT:
The licensing process would start with the insurer sponsoring a candidate for practical training. On completion of the mandated training, the applicant has to make an application in specified format for undergoing a written exam. On clearing of his written exam, the applicant will make an application to the “designated person” of the sponsoring insurer. Based on meeting all the above requirements and submission of application fee, the designated persons will issue the license, along with identity card. The license is valid for a period of 3 years unless terminated or surrendered. For any renewal of license, the agent needs to undergo additional 25 hours of training in either life or general from an approved institution, if the designated person refuses to grant or renew a license under this regulation, he shall give the reasons therefore to the applicant.
Insurance agency is one of the most rewarding professions. The IRDA have set out strict rules governing the conduct of agents and insurance companies. The insurers have been given the guidelines based on which they can issue license to eligible candidates.
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