In India, for selling any insurance products, you need to have a insurance agent license from IRDAI. This is a mandatory requirement that IRDAI has set to safeguard the interests of the insurance buyers. If you try to sell insurance products without a license, there can be legal charges and action against you.
If you want to become an insurance agent and sell insurance products in India, it is mandatory for an individual to acquire an insurance agent licence. The process to do so is quite easy. The process to get an IRDAI insurance agent license has been given below.
How to Get a Insurance Agent License for Selling Insurance?
There are different types of insurance agents that you can become. Now-a-days a PoSP has gained popularity raising questions among individuals about how to become POSP insurance agent. By associating with a good firm, you can get trained accordingly and appear for the exam. After clearing the exam, you get the insurance agent certificate. Opting for POSP insurance agent training is one of the easiest and fastest ways of becoming a licensed insurance agent.
How to Apply as a POSP Insurance Agent?
All you need to do to apply as a POSP insurance agent is to follow the steps below:
- You can check which companies are having a vacancy for POSP agents in the insurance sector.
- Then you have to select the one with which you want to apply as the agent.
- After selecting the company, you need to apply by filling up all the details.
- Once they approve your application, you will receive training under them.
- Once you complete the training, you can appear for the Insurance agent examination by IRDA.
- If you clear the examination with the required percentage, you get the license.
Eligibility for Becoming a Licensed Insurance Agent
The eligibility criteria become an insurance agent as per IRDAI guidelines are as follows:
- You must have cleared your 10th standard examination
- Your age must be above 18 years
- You need to have an Aadhaar and PAN card which are valid
- You need to complete the 15-hour IRDAI training and clear the examination to get the license.
Why Becoming a POSP Insurance Agent Can Help in Getting a License?
A general insurance agent can sell any type of insurance. As there are innumerable insurance products in the market, starting from life insurance to non-life insurance, business insurance, and product-specific insurance, a general insurance agent would require time to understand and learn about all these products.
However, a POSP insurance agent has the responsibility and job profile of selling a particular or sector-specific insurance product. Suppose, you become a POSP, which means Point of Salesperson insurance agent and the product you have to sell is car insurance. So, you will be selling only car insurance and no other insurance products that the company you are working with have on their list.
This is one of the crucial reasons why getting a license as a POSP insurance agent is easier than a general insurance agent. As a POSP agent, you need to learn specific insurance products and details about them and not about every insurance product. This makes the training easier, and also clearing the examination becomes easy. Thus, getting a license becomes a cakewalk.
Also read : What is general lability insurance?
Benefits of Being a Licensed Insurance Agent
- The first and foremost benefit of having a license to sell insurance is that no one can take any legal action against you for selling them insurance products.
- You can get jobs in the market easily once you earn the license.
- As a POSP insurance agent, you can sell insurance sitting on your couch as well
While IRDAI made a license a mandatory thing for the insurance agents, it is also important on the part of the insurance buyer to check whether the agent has a license or not. It not only safeguards the clients’ interest but also helps the insurance agents sell the insurance easily.