SYLLABUS (LIFE)

1. INTRODUCTION TO INSURANCE

   1. Purpose and Need of Insurance

   2. Insurance as a social security tool

   3. Role of Insurance in the development of economy

   4. Pooling of risks and resources

2. FUNDAMENTALS OF AGENCY LAW

   1. Agency Law including definition of who is an agent, what are his functions, who can become an agent, the kind of business he can procure, etc.

   2. Agents' Regulations

   3. Contract Act

   4. Various intermediaries in the insurance market- agents, brokers, surveyors, consultants etc.

   5. Difference between an agent and a broker and other intermediaries

   6. Methods of remunerating the agent

3. LEGISLATIVE AND REGULATORY MATTERS

   1. Insurance Act, 1938

   2. LIC Act, 1956

   3. Insurance Regulatory & Development Authority Act, 1999

   4. Consumer Protection Act, 1986

   5. Ombudsman Scheme

   6. Various other Acts such as Income Tax Act, etc. connected with conduct of Life Insurance Business

   7. Code of conduct in Advertisement & Publicity areas.

4. PROCEDURE FOR BECOMING AN AGENT

   1. Pre-requisite for obtaining a license

   2. Insurance company sponsorship

   3. Obtaining a license- minimum age, educational qualification, practical training

   4. Maintenance & Duration of license

   5. Termination of License: revocation or suspension/ termination of appointment

   6. Code of Conduct : Unfair Practices, Rebates; Prohibited Inducements and Discrimination; twisting and poaching, Misrepresentations & incomplete comparison; False statements regarding insurance companies financial condition

5. FUNCTIONS OF THE AGENT

   1. Proposal Form and other forms for grant of cover.

   2. All material and relevant information.

   3. Financial and medical underwriting

   4. Family history, medical examination, special medical reports etc.

   5. Admission of Age

   6. Special reports, Moral Hazard report, etc.

   7. Advance payment of premium before acceptance of the risk: Sec. 64VB of the Insurance Act.

   8. Ensuring delivery of policy to the insured

   9. Revivals

   10. Nomination & Assignment

   11. Procedure regarding settlement of benefits.

6. COMPANY PROFILE

   1. Organizational Set-up of the company.

   2. Corporate Mission

   3. Strengths of the company

   4. Market Share

   5. Product details

   6. Promotion Strategy

   7. The Actuarial Profession- role in life insurance companies

   8. Product Pricing- Actuarial aspects

   9. Distribution Channels which the insurer has; - other distribution channels - their relative merits and demerits

   10. Hierarchical structure for agents- Trainee Agent, Junior /Senior Agent etc.

7. FUNDAMENTALS/ PRINCIPLES OF LIFE INSURANCE

   1. Utmost Good Faith

   2. Insurable Interest

   3. Pooling of similar risks

8. FINANCIAL PLANNING AND TAXATION

   1. Trends in Financial Services Market

   2. Other Savings Instruments like shares, units, capital markets, mutual funds, etc. vis-?-vis insurance

   3. Tax benefits under insurance policies.

   4. Life cycle- Needs

   5. Solutions- Matching of the customers needs & requirements to that of the products available

   6. Comparison between different products offered vis-?-vis premium chargeable, coverage, etc.

9. INSURANCE SALESMANSHIP- SELLING TECHNIQUES

   1. Salesmanship - An Introduction

   2. Selling Process

   3. Pre-Approach

   4. Interview

   5. Objection

   6. Closing

   7. Service

   8. Consumer Education

10. COMPUTATION OF PREMIUMS/BONUSES

    1. Use of premium table in calculating premiums

    2. Premium rebates- mode rebates, large sum assured policies rebate

    3. Computation of premium, extra premium, rider premiums

    4. Computation of benefits- Surrender Value, Paid up Value etc.

11. INSURANCE DOCUMENTS

    1. Proposal Forms and other relevant forms

    2. First Premium Receipt/Renewal Premium Receipt

    3. Policy Contract

    4. Endorsements

    5. Renewal Notice/ Bonus notices

    6. Other Insurance Documents related to insurance

12. LIFE INSURANCE PRODUCTS

    1. Traditional/Unit Linked policies

    2. Individual and Group Policies

    3. With Profit and Without Profit Policies

    4. Different types of insurance products- whole life products, Interest sensitive products,, Term, Annuities, Endowment, Combination plans & variations

    5. Policies for Females, Children, Physically Handicapped

13. OPTIONS, GUARANTEES AND RIDERS

    1. Policy riders

    2. Policy options

    3. Policy guarantees

14. GROUP INSURANCE & SUPERANNUATION SCHEMES/ PENSION PLANS

    1. Special legal/other Features of group Insurance/Superannuation schemes

    2. Group insurance schemes - Employees Deposit Linked Scheme (EDLI) and Non- EDLI Schemes

    3. Gratuity schemes

    4. Superannuation Schemes- Money purchase and Defined benefit Schemes

    5. Savings linked insurance policies

    6. Group annuity Schemes

    7. Voluntary Retirement Schemes

15. HEALTH INSURANCE

    1. Critical Illness/ Dreaded Disease Plans

    2. Health Insurance riders

    3. Permanent Health Insurance

    4. Notification of claim, doctor's report, claim form, payment of claims

16. GOVERNMENT SCHEMES/ PROGRAMMES ON INSURANCE

    1. Details of different Government insurance schemes

    2. Subsidy provided by the Government for underwriting the schemes- SSGS, RGLIS, IRDP Scheme

17. RURAL INSURANCE

    1. Definition of rural area

    2. Rural Insurance Schemes- SSGS, RGLIS, IRDP Scheme

    3. Targets in terms of total premium which should be completed by the agent

    4. Penalties for not meeting the laid down stipulations

    5. Special skills to market rural insurance schemes

    6. Details of Schemes specially designed for the rural areas.

18. CLAIMS

    1. Intimation Procedure

    2. Claims Documents- Forms

    3. Settlement Procedures

19. AGENCY COMMISSION STRUCTURE

20. PERSONAL DEVELOPMEMT

    1. Personal Business Goals - Understanding the competition and enhancing time management skills, future prospects within the company.

    2. Marketing and Sales opportunities - Identify target markets and build relationship skills in the total planning sale.

    3. Target Marketing - Develop the prospect customers profile and focus on new profitable target markets.

    4. Review the expanding market of aging adults

    5. Business Continuity - Emphasis on retaining the client by providing him upto date information on the changes taking place, the benefits that he may enjoy because of changes in rules/ regulations/ change in company policy, sending out renewal notices, etc.

21. BEHAVIOURAL ASPECTS

    1. Motivation

    2. Morale

    3. Communication Skills

    4. Persuasive Skills

    5. Analytical Ability

    6. Behaviour with other Agents/ Employees of Insurer

22. FEEDBACK TO COMPANIES ON CUSTOMERS REQUIREMENTS WITH REGARD TO THEIR INSURANCE NEEDS AND MISCELLANEOUS MATTERS

    1. New requirements of the customers

    2. Modifications on the coverage, rates, etc. of the customers

    3. Code of conduct laid down by IRDA

    4. Penalties

    5. Dispute resolution forum set up by IRDA for adjudication of disputes between the Agent and customer/ insurer.

    6. Feedback to IRDA on the nature of disputes & methods of resolution.