If you are looking for ways to maximize your earnings, becoming an insurance agency might work. An insurance agent job may allure you with its money-making perks but its benefits are far more pronounced. So, whether you are already in a job or looking for one, becoming a licensed insurance agent is a lucrative opportunity to explore.
Wondering how to become a licensed general insurance agent in India? If yes, keep reading. In this post, we are going to acquaint you with everything you need to know about becoming a general insurance agent.
Who is a licensed General Insurance Agent?
An insurance agent is a person who holds a license to sell the policies of insurance providers. He/she works as a representative of an insurance company and is trained to guide people to choose suitable insurance policies based on their needs. The main role of an insurance agent is to reach out to prospects and convince them to buy insurance policies. If a policy purchase is made through the agent, then he/she is rewarded with some incentive amount on premium paid by the customer, plus, the agent also receives a certain percentage commission as long as the policy continues.
Furthermore, as a general insurance agent, a person will be dealing with the sales of all non-life insurance products such as:
- Health Insurance
- Motor (Car, Bike, Commercial Vehicles) Insurance
- SFSP Insurance
- International Travel Insurance etc.
Thus, a general insurance agent may also work as a health insurance agent whose roles and responsibilities will involve selling customized health insurance plans. Who can become a licensed General Insurance Agent?
As per the guidelines by the Insurance Regulatory and Development Authority of India (IRDA), a person willing to work as an insurance agent must fulfill the following criteria:
- The minimum qualification to become an insurance agent is to clear the 12th standard examination. However, if you want to excel further, in that case, you must have a graduation certificate or requisite experience in sales.
- Any individual, be it, a homemaker, student, self-employed, financial consultant, retired individuals can opt to become a general insurance agent.
- The essential documents needed in the process include government-issued identity proof, proof of address, Educational qualification Certificates, a copy of PAN card, and photos in the prescribed format.
- In order to secure a license, a candidate is required to undergo training from an approved institution. The duration of training will differ depending on the field of insurance you are selecting. For example, the duration of training for a health insurance agent and a travel insurance agent will be different.
Read more – What is Group Health Insurance?
Eligibility Mandates for Becoming a General Insurance Agent
An applicant must meet the following basic eligibility to become a licensed general insurance agent:
- A candidate must be a citizen of India.
- He/she must be 18 years and above.
- He/she must have obtained IRDAI certification.
- He/she must hold a license as per the mandate by the state’s regulation policies.
Procedure to become a licensed General Insurance Agent
Step 1: Registration
Firstly, you need to select an insurance company of your choice. Look for a company that offers suitable products as per the customers in your area. This will make it easier for you to sell policies. After this, go to the selected company’s website, fill insurance agent application and submit details as asked. This will complete your registration and if selected you will be contacted by the concerned insurance company.
Step 2: Training
After registration, you will be enrolled in the training program. Attending this training is mandatory as per the policies set by IRDAI. The training can be either online or offline. The best part is, the training is mostly held on weekends i.e. Saturday and Sunday.
Step 3: License Exam
After completion of training, a candidate has to appear for the pre-licensing exam i.e. IRDAI IC 38 pre-recruitment. This is an objective type exam in which you need to score a minimum of 17 marks out of 50 marks to qualify.
Step 4: Receiving the License
If you make it through the exam, you will be issued a license by IRDAI. Additionally, the insurance company will provide you an appointment letter along with their identity card. Woah! Now you have become a licensed general insurance agent.
Click here to read – Pros and Cons of a group health insurance coverage
Benefits of becoming an insurance agent
- Flexible working hours. You are free to work at your convenience.
- Opportunity to meet more and more people.
- Endless opportunity to earn money. Apart from basic salary, you get a bonus on completing certain targets as well as commissions on closing sales.
- Agents with a good growth track record are rewarded with expensive gifts and other perks.
- You can work in parallel along with your other profession.
I hope this guide solves all your queries on how to become a licensed general insurance agent in India. For more questions, feel free to drop us a message.