6 Steps to Being an Insurance Agent

A career as an insurance sales agent gives an opportunity to earn by using your network of friends and family. The best part is flexible working hours and the privilege of having a second income and being your boss.  If you too have been willing to be an insurance agent here are the options available and things you must consider.

1. Options available

To be an insurance agent you can be associated with the broker or insurance company. When you are associated with an insurance company you can sell any policies from the insurance company. However, being associated with a broker gives you a wider scope as you can compare policies from different insurance companies with whom the broker is tied up. This gives you an option to present your customer with a wide variety of choices.

Also check: How you can be an agent with Symbo India Insurance Broking Limited

2. Qualify on the minimum eligibility requirements

Individuals wanting to become an insurance agent need to have some minimum eligibility qualifications. If they are looking to become an insurance agent for a broker, they should have at least passed the 12th standard if they reside in a place whose population is 5000 and above. For other places, however, the minimum educational requirement is passing the 10th standard. For Point of Sales Persons (PoSPs), the minimum education qualification is clearing the 10th standard. Besides the minimum educational qualification, the candidate should also be of a sound mind with a minimum completed age of 18 years when applying for as an insurance agent.

2. Registration and documents required

If you meet the above-mentioned eligibility criteria, you would have to fill up a registration form expressing your desire to become an agent, broker or Point of Sales Person (PoSP). Along with the registration form, you should pay the registration fee and attach the required documents with the form. These documents include your Aadhar card, PAN card, recent coloured photographs and any other documents required. Sometimes, your proof of educational qualification might also be required.

3. Training

Once the registration is done and the documents are submitted, you would have to undergo a mandatory training to qualify for appearing  the agents’ examination. This training is conducted by the training institutions approved by the Insurance Regulatory and Development Authority of India (IRDAI). The duration of these training ranges from 25 hours to 75 hours depending on the type of agency you have applied for. For instance, for insurance agents, the training duration is 50 hours while for composite brokers, the duration is 75 hours. Point of Sales Persons (PoSPs), on the other hand, is required to undergo a training of only 25 hours.

4. Examination

After the training is complete, you become eligible to appear for the insurance agents’ exam which is the last hurdle to be conquered in becoming an agent. This exam has been made compulsory by the Insurance Regulatory and Development Authority of India (IRDAI) and is taken online. There are multiple choice questions, and you should score 35% to 45% marks to clear the examination. The passing percentage depends on type of agency you have applied for. If you do not clear the exam on the first attempt, you can retake the exam again and until you clear it.

5. Licensing

If you score the minimum marks required, you clear the examination. Once the examination is cleared you get a license issued by the Insurance Regulatory and Development Authority of India (IRDAI). This license authorises you to sell insurance products to the public. Selling insurance without a valid license is a punishable offence.

So, you have to follow the above-mentioned steps, in chronological order to become an insurance agent and start your career in insurance sales.