IC 38 exam is an initial step to become IRDAI Agent/Insurance Advisor. Insurance Institute of India (III) on behalf of IRDAI (Insurance Regulatory and development Authority of India), conducts this pre recruitment qualification examination. This exam is conducted on online platform where the results are seen instantly on the monitor as soon as you submit your test paper. Within a period of 1 hour 50 multiple choice questions are to be answered. 35% marks are required to pass the exam (minimum 18 marks). There is no negative marking system; hence no any question should be left unanswered.
Eligibility Criteria for becoming Insurance Advisor
Insurance Regulatory and Development Authority (Licensing of Insurance Agents) Regulations, 2000 requires, applicant to have the minimum qualification of 12th standard pass. If the applicant resides in a place with 5000 or more population he should be 12th standard exam passed from recognised board while applicant should be 10th passed from recognised institution if he resides in a place with population less than 5000.
Insurance Agent cannot change the Agency from one Insurance Company to another. So, you need to be very careful when we choose the Insurance Company. An Individual Agent on his name can take maximum 3 Licenses’ from the Life Insurance, General Insurance & Standalone Health Insurance Companies.
Initial steps to be followed to become Insurance Agent:
- Choose the Insurance Company for which you want to become Insurance Agent.
- Walk to the nearest office of your chosen company OR Apply online on Insurance Company’s website OR
- Enrol yourself with the Insurance Company you wish to be associated with as only through the Insurance Company you will be able to appear for examination.
- Complete the formalities by submitting the completed form along with the birth proof and highest qualification proof to Insurance Company office.
- Complete 50 hours training from IRDAI approved training institutions. Now-a-days, extensive In-house trainings are arranged by Insurance companies which help you to prepare for IRDAI examination. Applicant seeking license for the first time to act as composite insurance agent will have to complete 75 hours of training.
- Once the training is completed you will be provided with Training Completion Certificate from the Insurance Company to appear for the IRDAI Insurance pre recruitment qualification examination.
- Post examination & based upon the issue of the license by the Designated Person of the Insurance Company the agent should enter into an agency agreement with the Insurance Company valid for a specific period.
Composite Insurance Agent: – Composite Insurance agent holds a licence to act as an insurance agent for both Life Insurance Company and General Insurance Company. IRDAI insurance agent can represent one life insurance Company and one non-life insurance company and can also represent one standalone health insurance Company (SAHI Company).
Renewing Agent Licence: – A person desiring to renew licence; should make application to designated person in Form IRDA-Agents-VA. On receipt of application designated person renew the licence if the applicant seeking renewal of licence possesses the required qualification, has completed 25 hrs practical training & has passed the pre-recruitment examination conducted by Insurance Institute of India or other examination body. Composite Insurance Agent has to make two separate applications & has to complete 50 hrs practical training from an approved institution. Designated person also assures the applicant’s application fitment in all aspects along with requirement of necessary knowledge of insurance products & business to procure insurance business & necessary capability in providing services to the policy holders.
Fees: – Rs 250/- is the fees payable for issue or renewal of Insurance agent licence. The insurance license issued stands stay valid for a period of three years.
Role of Insurance Agent: –
- Post completion of training & passing examination, an individual agent is licensed by IRDAI to sell insurance policies/products to the customers and provide post sales service including assistance (By identifying himself & Insurance Company of whom he is an Insurance Agent) to the insured customers at the time of claim.
- An Insurance Agent should serve Insurance customers to choose the right insurance policy for them, their families & appropriate insurance for their businesses that covers risk which in an unfortunate event may act as a financial aid.
- Insurance Agent should disclose to the Insured customers products for sale along with its features in detail offered by his Insurance Company.
- Insurance agent is required to obtain requisite documents required by Insurance Company & to explain the customers; information required to fill in the proposal form & explain to the customer importance of disclosure of all material facts which may affect underwriting decision & claim settlement later on. Insurance agent is required to disclose scales of commission for sale of insurance product offered to customer if such demand for disclosure is made by the customer.
- Insurance Agent should advise insurance customer to effect nomination or assignment & assist wherever necessary for any change in address, contact details etc.
Legal and Regulatory Aspects of Insurance Agency
Insurance Agent Licence granted by Insurance Regulatory & Development Authority of India is under the section 42 of Insurance Act. The Validity of Licence is 3 Years. If the Licence is cancelled due to fraud it cannot be renewed for five years. Insurance Agent needs to produce his/her licence in case anyone demands it.
Business that can be sourced through Life Insurance Companies:
- Term Insurance
- Endowment Policy
- Retirement Plans
- Unit Linked Insurance Plans (ULIP)
- Whole Life Plans
- Money Back Insurance
- Child Insurance Policy
Business that can be sourced through General Insurance Companies:
- Fire & Special peril Insurance
- Motor Insurance
- Health & Personal Accident Insurance
- Travel Insurance (Overseas & Domestic Travel)
- Marine Insurance
- Micro Insurance/Rural Insurance
- Liability Insurances
- Commercial Insurance
- Crop Insurance
- Home & Burglary Insurance etc.
Business that can be sourced through Stand-Alone Health Insurance Companies (SAHI Companies)
- Retail Health & Personal Accident Insurance (Indemnity & benefit Health, PA, Critical illness, Senior Citizen, Hospital Cash, Travel, Top-Up, Super Top-Up, Disease specific products etc.)
- Group Health, Group Personal Accident, Group Critical illness etc.
List of Life Insurance companies in India: –
- Life Insurance Corporation of India.
- HDFC Standard Life Insurance Co. Ltd.
- Max Life Insurance Co. Ltd.
- ICICI Prudential Life Insurance Co. Ltd.
- Kotak Mahindra Life Insurance Co. Ltd.
- Aditya Birla SunLife Insurance Co. Ltd.
- TATA AIA Life Insurance Co. Ltd.
- SBI Life Insurance Co. Ltd.
- Exide Life Insurance Co. Ltd.
- Bajaj Allianz Life Insurance Co. Ltd.
- PNB MetLife India Insurance Co. Ltd.
- Reliance Nippon Life Insurance Company.
- Aviva Life Insurance Company India Ltd.
- Sahara India Life Insurance Co. Ltd.
- Shriram Life Insurance Co. Ltd.
- Bharti AXA Life Insurance Company Ltd.
- Future Generali India Life Insurance Company Limited.
- IDBI Federal Life Insurance Company Limited.
- Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.
- Aegon Life Insurance Company Limited.
- DHFL Pramerica Life Insurance Co. Ltd.
- Star Union Dai-Ichi Life Insurance Co. Ltd.
- IndiaFirst Life Insurance Company Ltd.
- Edelweiss Tokio Life Insurance Company Limited.
List of General Insurance companies in India including Standalone Health Insurance Companies:-
- Bajaj Allianz General Insurance Co. Ltd.
- ICICI Lombard General Insurance Co. Ltd.
- IFFCO Tokio General Insurance Co. Ltd.
- National Insurance Co. Ltd.
- The New India Assurance Co. Ltd.
- The Oriental Insurance Co. Ltd.
- United India Insurance Co. Ltd.
- Reliance General Insurance Co. Ltd.
- Royal Sundaram General Insurance Co. Limited
- Tata AIG General Insurance Co. Ltd.
- Cholamandalam MS General Insurance Co. Ltd.
- HDFC ERGO General Insurance Co. Ltd.
- Export Credit Guarantee Corporation of India Ltd.
- Agriculture Insurance Co. of India Ltd.
- Star Health and Allied Insurance Company Limited (SAHI)
- Apollo Munich Health Insurance Company Limited (SAHI)
- Future Generali India Insurance Company Limited
- Universal Sompo General Insurance Co. Ltd.
- Shriram General Insurance Company Limited,
- Bharti AXA General Insurance Company Limited
- Raheja QBE General Insurance Company Limited,
- SBI General Insurance Company Limited
- Max Bupa Health Insurance Company Ltd. (SAHI)
- Religare Health Insurance Company Limited. (SAHI)
- Magma HDI General Insurance Company Limited
- Liberty General Insurance Limited
- Cigna TTK Health Insurance Company Ltd. (SAHI)
- Kotak Mahindra General Insurance Company Limited
- Aditya Birla Health Insurance Co. Limited. (SAHI)
- DHFL General Insurance Limited
- Acko General Insurance Limited
- Go Digit General Insurance Limited
- Edelweiss General Insurance Company Limited