Insurance Agent License Renewal Process in India

Every year, for thousands of Indians, insurance seems like a lucrative field to work in. With uncapped income potential, unmatched flexibility, and low entry barriers, many individuals become agents each year. However, you must have an insurance agent license if you want to sell insurance policies in India. 

As these licenses are issued for a period of three years, thousands of agents are expected to renew their licenses every year to retain their position in the industry. Here is all you need to know about India's license insurance agent renewal process.

What is an insurance agent’s license?

India is a country where insurance is a regulated industry. This means that there is a regulatory body called the IRDAI that ensures the smooth functioning and compliance of all stakeholders in the industry. The IRDAI regulates not just the insurance providers but also insurance agents and has made it mandatory for all agents to be licensed to sell health insurance.

To receive a license, prospective agents must be eligible for the eligibility criteria and complete their mandatory practical training with a registered insurer. After this, prospects can attempt a prescribed examination and clear it to receive their license.

This is the case for both exclusive and independent insurance agents.

Why is a license necessary for insurance agents?

The insurance agent license is a gateway to the potential for unlimited income, unmatched flexibility, and the ability to earn on the side, all with a low barrier to entry and zero monetary investment. This is why, every year, thousands of aspiring agents and renewing agents get licensed to practice and sell insurance.

There are several reasons why insurance agents need to get their licenses. Here are a few main reasons:

• Training and onboarding agents- One of the requirements to get a license is training. This is a way for insurers to train their agents, educate them about the industry, highlight the details of insurance products, and more. This also helps agents in getting the right tools and resources to succeed.
• Ensures compliance and educates agents of the new rules and regulations- By testing prospective agents, the IRDAI can ensure knowledge of new rules and regulations and regulate who is eligible to sell policies.

• Protects consumers from fraud- In India, agents must showcase their license to the consumer. This allows consumers to check if the agent approaching them is qualified, protecting them from scams and fraud.

   

How does the license renewal process work?

In India, the license issued to insurance agents is for three years, with agents required to fulfill specific requirements to renew it. Agents looking to renew their licenses can satisfy the conditions below and fill out the ​​FORM IRDA-AGENTS-VA and the FORM IRDA-AGENTS-VB available on the IRDAI website.

The main eligibility criteria required to renew the license and become an insurance agent online is to have completed classroom training and practical training again. Other than this, agents might also need to sell a minimum number of policies and retain customers to be eligible for the renewal.

Conclusion

In conclusion, licensing for agents is integral to becoming an insurance agent. While some agents might feel it unnecessary, having an expiry date and the renewal process is vital. This benefits both licensed insurance agents and the consumer as it helps upskill and educate the agent while adding a layer of protection for the customer. For agents whose licenses expire this year, refer to the above two forms and fulfill the requirements to be eligible for renewal.

So renew your expiring license today and avail yourself of the many benefits of becoming an agent.