AGENT'S LICENSING COURSE/ SYLLABUS

All agents, in order to obtain a license, have to go through a training program and appear for an examination to be conducted by the IRDA.

The following is the text of Agents' course for Life as well as Non-life.

Duration:

4 weeks (Designed to prepare individuals to pass Insurance Agent licensing examinations)

Purpose:

The syllabus is designed for practical training for Life Insurance Agents, as specified in Licencing of Insurance Agents Regulations (herein after called Agents' Regulations). It provides a foundation of knowledge, and concepts upon which an individual can build a successful career as a Life insurance agent.

General Licensing Requirements:

PROOF OF ALL THESE HAVE TO BE PROVIDED TO THE AUTHORITY BEFORE REGISTRATION AS AN AGENT.

Section 42(4) of the amended Insurance Act, 1938 states that a person taking licence to act as an insurance agent shall be one who is not:

1. A minor
2. Found to be of unsound mind by a court of competent jurisdiction
3. Found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit such offence by a court of competent jurisdiction
4. Found guilty of having knowingly participated in or connived at any fraud, dishonesty or misrepresentation against an insurer or an insured.

AND WHO:

1. possesses the minimum qualification of a pass in 12th standard ( 10th standard for rural agents)
2. shall have completed from an approved institution (An Agents Training Institution approved by the Insurance Regulatory and Development Authority) at least 100 training hours spread over to three to four weeks; and (period of training can be reduced under certain circumstances. Please see the Agents' Regulations).
3. has a pass in the pre-recruitment examination conducted by the Insurance Institute of India, Mumbai, or any other approved examination body.

THE EXPECTATIONS OF THE AGENCY SYSTEM ARE:

GOOD SERVICE AND ADVICE

Agent should offer consumers good service by responding to customer's needs in terms of grant of cover, advice, conduct, etc.

GOOD CONDUCT

Agent should be willing to promote products in personal lines market making the best use of their professional ability

THE PURPOSE OF TRAINING AN AGENT IS TO:

1. impart him(her) complete knowledge of products,

2. imbibe in him(her) the importance of Pre-and-Post sale service to customers,

3. equip him(her) as a trusted professional capable of advising persons on "Insurance";

4. make him(her) as an efficient salesperson ;

5. enable him(her) to master various techniques in the area of sale of insurance products;

6. instill in him(her) an ethical code which will inform all his(her) dealings.

TRAINING SCHEDULE AND STRUCTURE

1. Practical Training Methodology:

   
   

   1. The classroom training may be by means of lectures, discussions, speeches/ seminars, question - answer sessions, case studies, role playing, exchange of experiences, team training, replication of real life situation in the classroom, open house, self-study, etc.

   2. The use of various audio-visual devices while taking the lectures like slides, overhead projectors, computers, markers, etc. may be encouraged

   3. The training institute may ask the faculty to give handouts/ written material on the proposed lecture to the participants in advance.

   4. The training institute will arrange to supply every agent an agents manual, service manual, list of all the products available in the market, a handbook containing specimen copies of proposal form, policy form, claim form, etc. from the insurance company who has nominated the agent for the training course.

2. Examinations for Agents:
   
   

   1. All agents on completion of their training will have to appear in a written examination.

   2. The exam will consist of objective type questions only.

   3. The exam will be of maximum 100 marks.

   4. The time for examination will be 2 hours.

   5. 10% of Questions will be numerical.

   6. This will be followed by an interview of 25 marks, conducted by the insurance company.

   7. Every agent will have to score atleast 50% marks in the written exam and 60% in the interview for qualifying in the agent's examination and for award of a certificate.

3. Practical Training:
   
   

   1. Every person aspiring to take up agency as a career will have to undergo on the job practical training with the designated company where he will work under the supervision of a sales functionary.

   2. The sales functionary will teach the trainee the nuances of creating the need in the mind of the customer, understanding the wants of the clients, proposing 2 or 3 solutions for satisfying the want and finally helping him decide the best option and closing the deal.

   3. In addition administrative matters, documentation, etc. will also be taught to the trainee.