All insurance agents in India must be licensed by the regulatory authority for Insurance. Although it is pretty easy to get the license and requires no investment from the aspiring agent’s side, there are still some things that one should know about this whole process.
Let us explore everything you need to know about getting a license and practicing as an agent.
What is an Insurance Agent?
The IRDAI licenses an insurance agent to sell insurance products to potential customers. They represent insurance providers and act as an intermediary to understand the customer’s needs and offer the best policy based on their requirements.
They are responsible for explaining the policy details, for example, the policy duration, the inclusions and exclusions, the special conditions, and the claims process. They are also required to act as customer support post sales in some circumstances and offer financial advice if asked by the customer to help plan and budget the investment.
There are usually two kinds of agents in insurance. This distinction is made based on their affiliation.
- Exclusive Agent: An exclusive agent is usually a full-time or part-time employee for a single insurance provider and is responsible for selling insurance only from them. For people starting in the industry, starting out as an exclusive agent is preferable due to the handholding, benefits, and help provided to them.
- Independent Agent: An independent agent is not bound to any insurer and is free to sell policies from any number of insurers they are affiliated with. This is preferable for people who have already spent years in the industry, understand the details, and have loyal customers to bide their time if they don’t immediately find new customers.
What are the Requirements To Become An Agent?
Becoming a licensed insurance agent in India is quite simple. The requirements are lax and require no monetary investment from the applicant. It is an excellent option for both people looking to become an agent full-time or part-time to use the benefits of becoming one.
Here are the minimum requirements set up by IRDAI. While some insurers might set up additional requirements, these are the essential criteria everyone must fulfill.
- The applicant must be at least 18 years old.
- Depending on where they are from, they must complete their secondary or senior secondary education.
- They must possess an Aadhaar Card and a PAN Card.
- They must also complete mandatory training for a set period.
- They must also attempt and pass a simple prescribed examination.
What is the Process to Become Licensed as an Agent?
I currently work as a health insurance advisor for Niva Bupa, one of the country’s leading health insurance providers. This is a step-by-step guide anyone can follow to do so and start their careers as well.
- Visit the Niva Bupa website and click on ‘Become an agent’ mentioned at the top of the page.
- Fill out the form and complete your training with them.
- Get the resources and attempt the licensing examination.
- Once you pass the examination and sign the onboarding document, you can start working with them as an agent.
Conclusion
Becoming a licensed insurance agent in India is an extremely accessible yet rewarding career option which can help empower individuals to secure their financial independence. Not only does becoming an agent have a lot to offer in terms of tangible benefits, but it also offers intangible advantages like having a new experience every day, meeting new people, developing skills and helping those in need.
With the right dedication and commitment to understanding what you are offering and the needs of the customer and being able to analyse these situations, you, too, can embark on this journey to become a successful agent.
Also Read: Calculating Your Life Insurance Needs: A Comprehensive Guide
