When it comes to selecting the right insurance policy, there are numerous options available in the insurance market; however, individuals frequently become confused due to the complexities of the insurance policies. They find it difficult to understand.
Here comes the role of a good insurance agent, who can assist individuals in finding the policy that best suits their needs and preferences while saving them time and money.
1. Who are Insurance Agents?
Insurance agents act as intermediaries between insurance companies and their customers. They can sell policies either independently or through an insurance agency. A licensed insurance agent offers a wide range of services to their clients, including assistance with form filing, facilitating smooth claim settlements, and keeping them up to date on any changes to their insurance policies.
These agents have specialised knowledge of the policies available in the market and can assist their clients in finding the best one for them.
Insurance agents specialise in a variety of industries, including life, health, auto, and many more.
2. Eligibility Criteria for Becoming an Insurance Agent
To become an insurance agent, you must meet certain minimum criteria set by the IRDAI. However, some insurance providers may impose additional requirements.
Age: The individual must be over the age of 18 years.
Qualification: He must have qualified 10th standard.
Documentation: Must have a valid Aadhaar card and PAN, and required to take a 15-hour IRDAI-mandated training.
3. Procedure for Becoming an Insurance Agent
Working as an insurance agent has multiple advantages, including the ability to build an income with no investment and the flexibility to work whenever it is convenient. If someone wants to become an insurance agent, they should take the following steps:
- Registration: An individual must complete the insurance agent application on the insurance provider’s website, including all the required information.
- Training: An individual must complete the IRDAI-mandated 15-hour training, which can be done online or offline.
- Exam: After completing the training, the individual is required to sit for a pre-licencing exam.
- Receiving the Licence: After passing the exam, the individual will be qualified to work as an insurance agent.
4. Steps to Renew Agents Licence
The Insurance Regulatory Authority of India (IRDAI) is responsible for issuing, cancelling, and renewing insurance agent licenses.
These are the steps set by IRDAI for renewing an agent’s licence:
- Review State Requirements: Insurance agents must check their state’s website before filing the renewal to check if they have any additional requirements.
- Gather All Necessary Documents: Insurance agents shall collect all the necessary documents before filing for renewal.
- Complete Continuing Education: Agents shall complete their continuing education hours and obtain certifications.
- Submit Renewal Application: Fill out and submit the renewal application as per the state’s procedure.
- Verify the Receipt: After submitting the renewal application and payment, verify that licence status is updated and active.
5. Process of Keeping the Insurance Licence Active
Insurance agent registration is required in today’s fast-paced insurance industry to remain compliant. An active licence confirms that the insurance agent can provide insurance services and is committed to professionalism.
Here’s a series of steps to keep the licence active:
- Understand State’s Requirements: Each state has its own set of rules and regulations to ensure the active licensure of insurance agents. Insurance agents need to familiarise themselves with the specific regulations of their state. Some states mandate that insurance agents complete a certain number of education hours. The renewal period for these licences also varies by state, typically ranging from 2 to 4 years.
- Renewal Period: Insurance agents must be aware of their renewal period. Additionally, there may be associated fees with the renewal of their insurance licence.
- Complete Continuing Education Courses: Continuing education is key to keeping your insurance licence current. It helps you keep up with industry trends, changes in regulations, and new technologies.
Insurance agents must keep records of their courses in case anyone asks.
- Submit Renewal Application on Time: Insurance agents must be aware of the deadlines and should start the process in advance. Some states even offer online renewal process options for convenience. It is necessary to check the information before applying.
- Stay Informed About Regulatory Changes: The insurance industry is dynamic and is continually evolving, with changes in laws, regulations, and market conditions. NIAC, National Associations of Insurance Commissioners, and local insurance agent associations often update the regulatory changes and industry laws. Reading newsletters can also help agents stay up to date on relevant news and changes.
- Maintain Ethical Standards: Adhering to ethical standards is critical not only for maintaining the licence, but also for establishing trust with clients. Insurance companies must ensure that they follow all legal and regulatory requirements that govern insurance practices.
6. Final Words
Licensed insurance agents assist their clients by evaluating their needs and requirements and then recommending the best policy. The Insurance Regulatory Authority of India (IRDAI) requires insurance agents to be registered before selling insurance policies in India. Renewing an insurance license requires great attention to detail and adherence to state-specific regulations.
Becoming an agent for health insurance is incredibly simple and convenient. If you’re looking to kickstart your career as an insurance agent, Niva Bupa is the perfect choice for you, thanks to its straightforward process. Niva Bupa welcomes anyone who meets the basic requirements to become an agent.