If you’re planning to become a licensed insurance professional in India, understanding the different types of insurance agent licenses and their eligibility requirements is crucial. The insurance agent license not only allows you to sell policies legally but also ensures credibility in the eyes of clients and insurers. In India, the IRDA licence for insurance agent is governed by the Insurance Regulatory and Development Authority of India (IRDAI).
What Is an Insurance Agent License?
An insurance agent license is an authorization issued by the IRDAI that allows an individual or entity to act as a legal intermediary between insurance companies and customers. Agents are responsible for selling, promoting, and servicing insurance policies.
Types of Insurance Agent Licenses in India
The IRDAI offers several types of insurance agent licenses based on the nature of the business and the structure of the applicant. Below are the major categories:
1. Individual Insurance Agent License
This is the most basic form of insurance license, intended for individuals who wish to sell life or general insurance products.
Key Features:
- Can be issued for life, general, or health insurance.
- The agent must be affiliated with only one insurer in a particular category.
Eligibility Criteria:
- Must be at least 18 years old.
- Minimum qualification: 10th pass (or 12th pass if working in an urban area).
- Completion of mandatory training (usually 25-50 hours) from an IRDAI-approved institution.
- Pass the IRDAI IC38 exam.
2. Corporate Insurance Agent License
This license is issued to organizations or firms that want to act as insurance agents.
Key Features:
- Applicable to banks, NBFCs, NGOs, co-operative societies, or other legal entities.
- Can represent up to nine insurance companies (three in each category: life, general, and health).
Eligibility Criteria:
- The entity must be registered under the Companies Act or other relevant legal frameworks.
- Appoint a Principal Officer with relevant qualifications and IRDAI certification.
- Fulfill infrastructure, capital, and training requirements as prescribed by IRDAI.
3. Micro Insurance Agent License
This license is aimed at providing insurance services to the rural and economically weaker sections of society.
Key Features:
- Encourages outreach in underserved areas.
- Agents may include NGOs, SHGs (Self Help Groups), or MFIs (Microfinance Institutions).
Eligibility Criteria:
- Should be a registered entity like an NGO or cooperative.
- Must undergo micro-insurance-specific training.
- Appoint a representative responsible for policy servicing.
4. Point of Sales Person (PoSP) License
A modern category under the insurance license framework, PoSPs are authorized to sell simple insurance products through digital platforms.
Key Features:
- Can sell pre-underwritten products like motor, health, and term insurance.
- Simplified onboarding and training process.
Eligibility Criteria:
- Minimum 10th pass.
- Must undergo 15-hour training.
- Must be empaneled with an IRDAI-registered insurance intermediary.
Steps to Apply for an IRDA Licence for Insurance Agent
Whether you’re an individual or a corporate entity, here’s how you can apply for an IRDA licence for insurance agent:
- Complete Mandatory Training from IRDAI-accredited institutions.
- Clear the IRDAI Examination (IC38 or equivalent).
- Submit the Application Online through the IRDAI portal or affiliated insurer.
- Verification and Licensing – Once documents are verified, the license is issued.
Conclusion
Getting an insurance agent license in India is a structured process governed by IRDAI. Depending on your goals—whether you’re an individual or an organization—there are different types of insurance license options available. Always ensure you meet the IRDA licence for insurance agent requirements to practice legally and effectively in the insurance industry.