How To Become An Insurance Agent

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Good things about becoming an Insurance Agent are that you don’t need any high or additional qualification or degree, there is no age bar of becoming an insurance agent and you can work for any insurance company of your choice. For a career oriented person it is a good business opportunity.

It can also be a great part time job for someone who wants to earn some extra income. Becoming an insurance agent can provide financial security and self reliance to a housewife and it can provide some earning and company to a retired person who doesn’t like to sit idle.

So, let us gather more information about different aspects of becoming an Insurance Agent as well as the steps required to be taken to become an Insurance Agent.

Steps To Become An Insurance Agent

Types of Insurance Agents

Before you decide to become an insurance agent you must know about the different types of Insurance Agents in the country so that you can choose the best suited one for yourself. There are three types of Insurance Agents categorized as per the Insurance policies they deal in.

You can choose to deal in Life Insurance in which case you will be called a Life Insurance Agent or you can enter into General Insurance sector and be known as a General Insurance Agent. However, you can also choose to deal in both Life Insurance and General Insurance in which case you will be called a Composite Insurance Agent.

Qualification for Becoming an Insurance Agent

As mentioned above, you will not require any special degree for becoming an Insurance Agent. However, you must have at least a qualification of 10+2 or equivalent from any recognized Board / Institution (where the population is five thousand or more). You must also be of 18 years or above in age to be able to work as an insurance agent.

Practical Training

If you want to be an Insurance Agent then you will have to undergo a practical training from an approved institution. The training is usually of 100 hours for Life Insurance and General Insurance and is spread over a span of three to four weeks.

For Composite agents the training is of 150 hours spread over a period of six to eight weeks.

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Examination

To become an Insurance Agent you will have to pass the examination conducted by Insurance Institute of India, Mumbai or any other examination body covering Life Insurance or General Insurance or both.

Procedure for Getting License

You will have to apply to the designated person (person authorized by the Authority to issue licenses) in Form IRDA-Agents-VA (in case of individual) and in Form IRDA-Agents-VC (in case of Firm or Company). For becoming a Composite Insurance Agent you will have to file two separate applications. Along with the application you must also deposit a fee of Rs. 250/- to the concerned authority.

Once your application is checked by the designated authority and your application meets with all the requisites in terms of the qualification, passing of the examination and practical training you shall be granted the license in Form IRDA-Agents-VB along with an identity card in Form IRDA-Agents-VZ (IRDA-Agents-VY in case of Corporate Agent). Your license shall be valid for a period of 3 years unless terminated or surrendered.

Becoming member of an Insurer

Once the license is obtained from IRDA you can join the Insurer under whom you have taken practical training. However, if you desire you can also change your Insurer. But you need to keep in mind that you are authorized to work for only one insurer at a time and breach of this term might lead to termination of your license.

Before your name is registered under the brand name of the concerned insurer you would require to give an interview to assure the Insurer that you are capable of doing Insurance business.

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