The career of an Indian-based insurance agent is not only a career option, but it is a chance to help people make wise financial choices and have a stable and reputable career. But the first thing you have to do is to acquire a valid Insurance Agent License from the Insurance Regulatory and Development Authority of India (IRDAI) before you commence selling life or general insurance.
This blog will guide you through all the details that you must know, including the eligibility requirements and documents that are required to be submitted, and finally, the process of registration and examination of IRDAI.
Why You Should Have an Insurance Agent License
Not only is it a legal requirement to be licensed, but it is also a form of credibility. It confirms to the clients that you are trained, certified, and granted authority to provide advice to clients about financial protection and risk management. Let us analyse the main reasons.
It is obligatory according to IRDAI Regulations.
Section 42 of the Insurance Act, 1938, stated that no individual can be an insurance agent unless he or she has a valid IRDAI license. It is regarded as a violation of the law to work without it and can be punished or disqualified.
1. Earns Confidence and Work Competency
The customers nowadays are more careful about the money they spend. The IRDAI license gives them immediate confidence that you are licensed, trained and that you are controlled by the national authority. It establishes trust, which is the basis of long-term relationships with clients.
2. Availability of Best Insurance Companies
The majority of the reputed insurers in India, such as LIC, HDFC Life, ICICI Lombard or any other, only accept licensed agents. Unless you have this license, you cannot be appointed by them or commenced by them.
3. Statutory Right to Earn Commissions
Commission income on the sale of policies is only to be received by licensed agents. The license will enable you to sell and make profits on a variety of insurance products - life, health, motor, travel, and property insurance.
4. Professional Development and Rewards
Licensed agents may advance to Certified Financial Advisors (CFAs), Brokers or Corporate Agents. The IRDAI license is the initial stepping stone to a long term financial advisory career.
Eligibility and Documents Requirement
If you want to become an insurance agent, make sure that you have the right documentation.
Regulation 4 of the IRDAI (Licensing of Insurance Agents) Regulations, 2016 provides certain qualifications that are set by IRDAI. The key points are:
1. Age Requirement
At the time of application, the applicant should be 18 years of age. It has no age restriction, and hence the career is appropriate even to mid-career workers or even retired workers.
2. Educational Qualification
Class 10th pass (Secondary School Examination) is its minimum qualification. The IRDAI can use Class 8th pass in rural areas, but the candidate must get some form of mandatory training.
3. Training Requirement
The candidate should undergo a compulsory pre-licensing training in an IRDAI-recognised institute.
The duration varies:
- 25 hours of training on either a general or life insurance license.
- 50 hours in case you wish to sell both (composite license).
The training covers:
- Essentials of risk management and insurance.
- Policy types and features
- Code of conduct and ethics
- Customer relationship management.
- IRDAI standards and KYC.
- Essentials of risk management and insurance.
- Policy types and features
- Code of conduct and ethics
- Customer relationship management.
- IRDAI standards and KYC.
Note: In the case of a candidate having a professional qualification such as CA, CS, MBA (Finance), or having a postgraduate degree in insurance, the training requirement can be minimized to 25 hours.
Examination Requirement
You are required to pass an IRDAI IC-38 examination, which is administered by the Insurance Institute of India (III) or NSEIT, after training.
The test is your knowledge test on insurance principles, rules and regulations and ethical sales practices.
In order to qualify, you need to have a minimum score of 35 out of 100 marks.
Forms to be Filled in the Insurance Agent License
During your registration on the IRDAI/BAP (BAP - Brokers and Agents Portal), you will have to upload and authenticate a couple of important documents. Here's the checklist:
| Document Type | Purpose/Notes |
|---|---|
| PAN Card | For identification and tax purposes |
| Aadhar Card | Proof of identity and address |
| Educational Certificates | Proof of minimum qualification (10th/12th marksheet) |
| Passport-size photograph | For official id and license card |
| Training Certificate | Issued by IRDAI-accredited institute after completing training |
| Exam Scorecard | Proof of passing the IC-38 examination |
| Bank Account Details | For commission payout registration |
| Address Proof | Electricity bill, rent agreement, or passport copy |
| Form V | The declaration form by the insurer sponsoring your application |
Step-by-step Process of Getting a License
Having confirmed your eligibility and having prepared your documents, we will now proceed step by step through the whole process of IRDAI licensing. This procedure is applicable regardless of whether you are coming in as a Life Insurance Agent or as a General Insurance Agent.
Step 1: Select the Type of Insurance You want to Sell
You should choose whether you want to:
Sell Life Insurance products (such as term plans, ULIPs, endowment policies),
Or General Insurance products (such as motor, health or property).
You may also choose to take a composite license where you are able to sell both. You will be deciding on which training institute and exam structure.
Step 2: Mandatory IRDAI Training
The next step is to enrol in an IRDAI-approved training centre or with the insurance firm you intend to work with. IRDAI-approved training providers of some of the best include:
- Insurance Institute of India (III)
- National Insurance Academy (NIA)
- NSEIT Limited
- Internal training academy of insurance companies (e.g., LIC, ICICI, HDFC, etc.).
- In the course, you will get to know:
- Essentials of insurance and policy design.
- Underwriting basics
- Claims process
- Ethics and code of conduct
- IRDAI regulations and duties of agents.
- Insurance Institute of India (III)
- National Insurance Academy (NIA)
- NSEIT Limited
- Internal training academy of insurance companies (e.g., LIC, ICICI, HDFC, etc.).
- In the course, you will get to know:
- Essentials of insurance and policy design.
- Underwriting basics
- Claims process
- Ethics and code of conduct
- IRDAI regulations and duties of agents.
Once you finish, you will be awarded a Training Completion Certificate.
Step 3: Enrol in the IRDAI Exam (IC-38)
After training, you have to pass the IRDAI IC-38 examination. It is a computer-based exam, which is administered by NSEIT Ltd or the Insurance Institute of India through approved centres.
Exam format:
- Duration: 60 minutes
- Total number of questions: 50 (Multiple Choice)
- Passing Marks: 35/100
- No negative marking
- Duration: 60 minutes
- Total number of questions: 50 (Multiple Choice)
- Passing Marks: 35/100
- No negative marking
The exam is a test of your knowledge on:
- Life/general insurance principles.
- Legal and regulatory factors.
- Customer management and morals.
- Product suitability and financial literacy.
- Life/general insurance principles.
- Legal and regulatory factors.
- Customer management and morals.
- Product suitability and financial literacy.
Hint: It is good to use your training notes and IRDAI mock tests prior to taking the exam. You may take it in English, Hindi or regional languages.
Step 4: Request Insurance Agent License via the IRDAI Portal
Once you have taken the IC-38 exam, the company you are intending to represent (sponsor) will assist you in registering on the IRDAI-BAP (Brokers and Agents Portal).
You will complete the Form V application and attach scanned copies of all supporting documents. The insurer authenticates your information and submits your application to IRDAI to be approved.
The application usually consists of:
- Personal and education information.
- Exam and training proof
- Identity verification
- Declaration of good conduct
- Personal and education information.
- Exam and training proof
- Identity verification
- Declaration of good conduct
Step 5: Review by IRDAI and Issue of License
After you have applied, IRDAI goes through a verification procedure. In case all was good, you will receive your Insurance Agent License in digital form.
Your license will include:
- Your full name
- License number
- Type (Life / General / Composite)
- Validity term (typically 3 years)
- Then you become a licensed insurance agent
Step 6: Renewal and Continuing Education
The duration of your license is three years, and you have to renew it after three years. In order to renew, you would be required to undergo an IRDAI-approved institute's mandatory refresher training (minimum 25 hours).
Build Your Insurance Career with Choice Connect
The Indian insurance sector is growing at an alarming pace, but there comes the responsibility along with it. Customers should get good, honest professionals who can guide customers to make informed decisions regarding financial matters.
The first step towards that responsibility is to get your IRDAI license as an insurance agent. It is not simply a legal requirement, but it is your business license to credibility, trust and long-term success. Licensing is only the start, as what you do after that determines your development. At least that is where Choice Connect helps you to start your journey by becoming a financial agent.
So, do not just sell policies, but also establish relationships, confidence, and a fulfilling financial career.
FAQs
1. What is the duration of obtaining the insurance agent license in India?
The whole process, training, examination and IRDAI approval, normally takes 3-6 weeks, based on the verification of documents and the sponsorship of the insurers.
2. Is it possible to work with several insurance companies on the same license?
No. Only one life insurer and one general insurer can appoint you as an individual agent. You will be required to become a corporate agent or broker in order to represent several insurers.
3. Is the IRDAI exam difficult?
The test is not a tough one, but a conceptual test. With the knowledge of the fundamentals of insurance products and by adhering to the learning content, passing the IC-38 exam is highly possible.
4. What is the consequence of my license expiring?
It has to be renewed prior to the expiry date. Failure to do this on time means you will be forced to take a retest and re-apply as a new agent. Your business will not be interrupted by late renewal.
5. What are the job opportunities upon obtaining the license?
Licensed agents may develop into advisors, agency managers, or consultants of a financial nature. After gaining experience, some of them become insurance brokers or corporate agencies and receive larger commissions and team management.
