Qualifications to be an insurance agent:-

A person must:—

1. Be at least 18 years of age.

2. Have passed 12th standard or equivalent examination if he is to be appointed in a place

with population of 5,000 and more or 10th standard otherwise.

3. Have undergone practical training in an approved Institute, in life or general insurance as

the case may be for 50 hrs. (on renewal for 25 hours) spread over 3 to 4 weeks for either of
the licenses, and 75 hours spread over 6 to 8 weeks for composite license There are
relaxations in the hours of Training for some Professionals, like CA’s,
MBA, Associates/Fellows.

4. Have passed the examination conducted by Insurance Institute of India or any other
examination body recognized by the authority. He will have to qualify 2 hrs written test by
obtaining 50 marks out of 100 marks.

5. The fees for each license is prescribed as Rs. 250/-. If the application for renewal is late
but made before expiry of the license than Rs. 100/- will be charged extra. In case license
has expired already then application for renewal will normally be turned down but if hardship
is proved then license may be renewed.

Disqualifications​:-

A person would be debarred from obtaining a license if he is

found to be:—

1. A minor.

2. Of unsound mind declared by court of competent jurisdiction.

3. Guilty of criminal breach of trust, misappropriation, cheating, forgery or abetment or

attempt to commit any such offence.

Rights and working of an insurance agent

Rights of an insurance agent:-

- Right to claim reimbursement for expenses: Agent has the right to retain, out of the
money received on behalf of the principal, money advacned or expenses properly
incurred in conducting the agency business. The agent may have paid the money at
the request of the principal, or on account of the understanding implied by the terms
 of the agency or through mercantile usage.

- Right to receive remuneration: He has also a right to claim remuneration as may be

payable to him for acting as an agent. In the absence of any contract to the contrary,
this right to claim remuneration will arise only when he has carried out the object of
the agency in full without being guilty of misconduct.

Working before the issuance of policy:-

- If a client has asked for the best or economical insurance products and services, the
insurance agent must strive hard to deliver the insurance products and services as
desired by the customer, based on his/her requirements. Respecting the sentiments
of the customer is an essential aspect and important, too.
- Using force to purchase insurance policies may not produce the desired results.
Many times, it has been noticed that the customers may not be able to afford to pay
the heavy premiums for certain insurance policies and may instead settle for a
cheaper one that satisfies their requirements.
- The main goal of an insurance agent is to sell the insurance policy that is appropriate
for a particular customer, based on his/her requirements. An insurance agent who is
talented in marketing various insurance policies will not find it difficult to sell a term
life insurance.
- Selling of term insurance policies is made relatively easy because of the low-term life
insurance prices. But even the best or an experienced insurance agent may fumble
or get tense when the clients ask regarding the investment in insurance products and
services since there is no monetary value accumulated at the end of the period upon
the expiry of a policy. In a tricky situation like this an insurance agent should be ready
to offer a solution of miscellaneous saving schemes.
- An insurance agent should be taught the promotion and selling techniques regarding
handling of customers who are apprehensive and are confused if they really want a
policy or not, or have not yet arrived at a conclusion as to which policy should be
purchased by him/her.
- The insurance agent should be taught the finer nuances about healthcare insurance
business and the selling strategies and should be clever enough as to convert
enquiries or objections into deals.
- The terms and conditions of the policies should be conveyed to the customer.
- An insurance agent’s role is primarily that of a communicator, counselor and
facilitator. The prospective customer can buy the best insurance products and
services for his/her varied requirements viz. life, property, health, burglary insurance
from the insurance agent.
- As a customer, when an insurance product is being purchased, let the insurance
agent know beforehand regarding his/her budgetary allocation towards insurance
coverage. The insurance agent in turn will help his/her clients to get the cheapest or
the best insurance product prices.
- If the concerned individual has selected an independent insurance agent then, then
he/she can expect to get best deals on insurance products and services from across
different insurance companies.
 - The customer can discuss with his/her insurance agent insurance plan suited for
him/her as per the requirements or customized based on the client’s needs. During
the presentation process, the insurance agent will explain the client regarding the
rates and what he/she will benefit from that particular insurance policy.
- When the individual or the prospective client has decided to buy an insurance
product or service from a particular insurance agent, the next step in the process is to
check and make sure to have all the personal financial and investment data ready
with him/her. While the agent asks for the financial data, the concerned individual
should be able to furnish the details to his or her insurance agent so that the
processing of the policy process can be carried out in a smooth manner.

Working after the issuance of policy:-

- Once the policy is enforced, the Life Insurance Agent is the one who is responsible
for ensuring that the renewal premiums are paid on time. This is done diligently by
most sincere life insurance agents as their renewal commissions are based on the
renewal premiums paid by the customers.
- Policy servicing- address change, nominee change, fund switch, partial withdrawal,
top up, loan, etc. are usually taken care by the life insurance agent because-
a. They need to be in the good book of the customer so that he would recommend
him to another prospective customer or take another policy from him
b. And also because they are the connection between the insurance company and
the customer and represent each in front of the other!
- Filing the claim-
a. In Maturity Claim- the Life Insurance Agent needs to ensure that the cheque
reaches the customer well before time so that the amount can be claimed on time.
b. In Death Claim- it is the duty of the Life Insurance Agent to help the nominee to file
the claim and ensure that the death benefit be paid with least confusion and with
maximum efficiency.
c. In Surrender Claim- the Life Insurance Agents helps the customer to complete the
process after understanding the reason for doing the same.