What is Insurance?
Insurance is a means of security and protection from financial loss. It is a kind of risk management plan ,scheme or instrument originally used to hedge upon the risk of a contingent or random loss. An entity that gives insurance is recognized as an insurer.
Like Star Health & Allied Insurance Company Limited and SBI Health Insurance Company Limited insurance company and others. An individual or entity who purchases insurance is known as an insured or Policyholder.
The insurance transaction includes the insured expecting a guaranteed and recognized a nearly small loss. In the form of payment to the insurer in trade for the insurer’s guarantee to pay the insured in the case of a covered loss.
The loss may or may not be financial. But it needs to be reduced in financial terms. Normally this includes something in which the insured has an insurable interest created by ownership and possession and many more. For carrying out the insurance selling we require insurance agents.
What is General Insurance?
A General Insurance includes all non-life insurance policies such as car insurance, bike insurance, travel insurance,health insurance etc among others.
These general insurance policies help individuals to protect themselves from losses in case of an unfortunate incident.
For example, a car insurance will protect someone from losses and damages caused to their car during an accident while a SFSP insurance will cover for losses in case of a burglary or natural calamity.
Given the rise in urban India’s standard of living, and laws like the Motor Vehicles Act, growing number of Indians are choosing to get themselves and what they own, insured.
Interesting facts about General Insurance industry in India
- The Indian general insurance industry grew by around 15 % annually over the last few years
- The total premiums underwritten by India’s non-life insurers stood at INR 1.59 trillion in 2019.
- The general insurance market in India is expected to cross $40 USD billion by 2020
Who is the insurance agent?
An Insurance Agent is a point of contact with an insurance company for all individuals. They help individuals with insurance products that are fit for them and to assemble all the required documentation and support policyholders during the term of the policy. Any One can become an Insurance Agent one of the companies i.e for a Life Insurance company or general Insurance company or become a composite Agent.
Types of insurance agents
There are many types of insurance agents.
Internal Sales agent: An internal sales agent (in house agent) is usually an employee of the insurance carrier.
Captive Sales agent: A captive sales agent is someone that works for one organization or company.
Independent agent/broker: Independent agents/brokers are general contractors that have individual agreements with insurance companies to offer their products.
How to become an Insurance Agent?
Those who are interested in becoming insurance agents are expected to register online via IRDAI (Insurance Regulatory and Development Authority in India) portal. Registration requires some forms to be filled and uploaded and payment to be made online. After registration is made, the exam date and timing would be inferred to the applicant.
Even the IRDAI website also gives study materials for agents that help them to understand what exactly is included in becoming an insurance agent. The study materials are available in different languages such as English, Hindi, Marathi, Gujarati, Tamil, Bengali, Kannada, Malayalam, Telugu and Punjabi.
For many , becoming an insurance agent can be a productive and stress-free job. You will decide your working hours and work from home without being tied to a desk and a 9 to 5 job. Retired people, mothers staying at home and others looking to enhance their income can benefit from knowing how to become an insurance agent.
How to get insurance agent license ?
The easiest way to become an insurance agent is by completing your POSP certification. A POSP (Point of Sales Person) is the name given to an insurance agent who can sell specific insurance products.
To become a POSP, you only need to have the minimum educational qualifications required by the IRDAI and undergo training provided by us.
What are the requirements and qualifications to become an insurance agent?
Here is what you need to become an insurance agent online:
- You must be over 18 years of age,
- You should have completed education up to at least Class 10,
- You need to have a valid Aadhaar Card and PAN Card.
- You will be then be asked to complete compulsory 15-hour training specified by IRDAI.
Who can become an insurance agent?
The only requirement for becoming an insurance agent is that the candidate must be over 18 years of age and should have completed Class 10.
This means that anybody who has an attitude and aptitutde to sell insurance policies can become a POSP Agent. This includes college students, stay-at-home spouses, retirees, and businessmen/women.
Why should I become a General Insurance Agent?
Become your own boss
One of the main advantages of being a POSP is the freedom to work as per your convenience. You can now be your own boss!
No time constraints!
You can decide whether you’d like to work fulltime or part-time and craft your own working hours accordingly.
Work from home
you as a POSP can work from home and use our online processes to sell and issue policies.
Only 15 hours of training
To certify as a POSP, one of the main criteria’s is to completion of the 15-hours compulsory training offered by the IRDAI. All it is going to take you is 15 hours of investment to get on board!
High earning potential
Your earnings don’t depend on number of hours worked but on the number of policies you issue.
Apart from having a smartphone, a good internet connection, and the required 15-hours training, that is what all you need to become a POSP. So, there’s almost no monetary investment required from your end, while the earning potential is high.
There is no specific category for Agents. If you register for becoming a general Insurance agent, you can sell all general insurance products.
Process to Become an Insurance Agent
Simple Registration Process: To become an Insurance agent, you have to complete a simple registration form available on the website. You can submit the documents specified in the article.
Online or Offline Training: Once you are done with the registration process, you will have to go for online or offline Training of 25 hours. Upon the finish of the training, you will be awarded a training certificate. The training includes all the phases of Insurance Business.
Examination: Further, you will perform a Pre-Licensing Online exam conducted by IRDA and obtain at least – 17 out of 50 Marks. The questions in the examination will be of objective type.
License: Upon passing the exam, you will be given a license by IRDA to work as an insurance agent. Then you will be appointed as an agent.
Documents required for becoming an insurance agent
One would require to address an Insurance company to become an Insurance Agent. Then apply in the designated format along with financing documents.
Documents are :
- Identity proof-Aadhar card
- Address proof
- PAN CARD copy
- Some copies of one’s photograph
- Highest education certificate
After this documentation completion, then apply. One will have to know about online training. Once its clear one obtains certified to grow as an Agent. It takes nearly 60 days from the time one enroll to become an Agent.
Roles and Responsibilities of Insurance Agent
The insurance agent assists in advertising and sale of insurance products and services to its customers.
He/ she must have all knowledge and customary awareness about the markets.
Providing reliable financial consulting services and customer support to the clients.
Business Development tactics necessitate being tracked in a determined way.
Well-planned policies and plans require to be attained.
The promotion of insurance brands requires to have fully illustrated plans.
Marketing strategies need to be formed and re-formed from time to time. Also, having in mind the customer choices.
Public-relations structure-activity must be presented to have vital importance.
License for Insurance Agent
To become Insurance Agent in India, a candidate should pass IRDAI IC 38 pre-recruitment qualification exam. To become General Insurance Agent in India, a candidate should pass the IRDA IC 38 Exam. On behalf of IRDAI (Insurance Regulatory and Development Authority of India), Agent pre-recruitment exam is carried by institutes sanctioned by the regulator.
You must enroll yourself with the insurance company you like to be associated with. Only through that insurer, you will be able to appear for the examination. You should complete 50 hours of training from an IRDAI approved training institution to act as a Life Insurance agent.
If you are seeking a license for the first time to act as a composite insurance agent, you will have to take 75 hours of training. The exam takes place online. Once you submit the answers to the multiple-choice questions, you will immediately get the result. The insurance license issued to you will stay valid for three years.
IRDA examination fees
IRDA Exam fee is Rs.200 for each entry form
Required fees and two photos are to be submitted.
How to prepare for Practical Training
If the applicant is asking the license for the 1st time, He or she must undergo 100/50hrs training in an IRDA certified institution. Following take the Pre-Licensing test to qualify for appealing for an Agency License.
One can get IC 38 Study material for Agents on clicking the link: http://www.irdaonline.org/
Code of Conduct for Insurance Agent
All Insurance agent having license need to stick to the code of conduct specified here:
All insurance agent must :
An insurance agent must represent his/her insurance company. Also, introduce himself/herself.
Display the license whenever ask for.
All insurance agent must not:
Never trade insurance without holding a legitimate license.
Do not misguide the candidate’s overall insurance services.
Tips to become a successful Insurance Agent
To become an Insurance agent, and get success in the insurance files. One need to modify themselves from others to do so one wants to retain the following things in mind:
Nowadays, all respective insurance companies have strong recruitment plans. It includes a step-by-step method originating from screening, supported by extensive in-house practice and IRDAI exam. Once a person clears the exam, he/she become an official insurance advisor. For becoming an insurance distributor do visit our website.