Agents and Procedure for Becoming an Agent, Types of Insurance Agents, Pre-requisite for obtaining a License, Duration of License, Remuneration

An insurance agent is a person who sells insurance policies on behalf of an insurance company. Agents act as a link between insurers and customers. They explain policy features, collect proposal forms, help in premium payment, and assist in claim settlement. Insurance agents play an important role in spreading insurance awareness, especially in rural and semi urban areas. Agents must be licensed by IRDAI to operate legally in India.

Procedure for Becoming an Insurance Agent:

To become an insurance agent, a person must fulfill IRDAI requirements. First, the person should apply to an insurance company or intermediary. After selection, the applicant must complete prescribed training from an IRDAI approved institution. Training hours vary depending on the type of insurance. After training, the applicant must pass the IRDAI licensing examination. Once the exam is cleared, the insurer applies for the agent license on behalf of the applicant. After approval, the agent can start selling insurance policies.

Types of Insurance Agents:

Insurance agents are classified into different types based on nature of work. Individual agent sells policies of one insurance company. Corporate agent is an organization like a bank or company selling insurance products. Micro insurance agent works for low income groups through NGOs or self help groups. Composite agent is allowed to sell both life and general insurance products. Point of Sales Person sells simple and standard insurance products.

Pre Requisite for Obtaining a License:

To obtain an insurance agent license, the person must meet certain conditions. The applicant must be at least 18 years of age. Minimum educational qualification is usually 10th or 12th pass, depending on area. The person must complete mandatory training hours. Passing the IRDAI approved examination is compulsory. The applicant should have good character and should not be involved in fraud or criminal activities.

Duration of License:

An insurance agent license is issued for a period of three years. The license must be renewed before expiry to continue working as an agent. For renewal, the agent must complete refresher training and apply through the insurer. If the license is not renewed on time, the agent cannot sell insurance policies. Renewal ensures updated knowledge and continued compliance with regulations.

Remuneration of Insurance Agents:

Remuneration refers to the commission paid to insurance agents for selling policies. Commission rates are fixed by IRDAI. Agents earn commission as a percentage of premium collected. Commission may differ for life, general, and health insurance. Renewal commission is also paid for continuation of policies. Agents may also receive incentives and bonuses based on performance. Remuneration motivates agents and supports their livelihood.