How to become vehicle insurance agent in India in 2022(Easiest Way)
Big public sector insurers like life insurance corporation of India has traditionally relied on the agency model and even now a large chunk of their business is getting placed by individual agents. In this article we are going to talk about auto insurance agents, their roles and responsibilities and what all is needed to be a successful auto insurance agent in India.
Demand of motor insurance: Motor insurance is the largest contributor of gross written premium amongst all lines of businesses in the non-life insurance segment, the reason behind the same is increasing liking of cars in the burgeoning middle-class segment of India, a good demand for commercial vehicles as the economy is expanding, demand for vehicles used in agricultural processes like tractors.
With the demand for all these vehicles growing the demand for the mandatory third-party liability insurance policy is also increasing. Thus, the need for motor insurance policy is increasing now like never before and the auto insurance agent must keep this in mind.
How to become a vehicle insurance agent in India: The process, eligibility and other requirements for becoming an insurance agent, whether he want to sell life or general insurance products is same. Below we discuss the steps for becoming an auto insurance agent in India.
Step 1 – Register yourself with any one general insurance company of your choice. The insurer may be any one of the four public sector companies of GIPSA namely, New India, National insurance, United India, Oriental insurance or any of the privately sector general insurers like ICICI Lombard, TATA AIG, Bajaj Allianz etc. In addition to that the agent can enrol himself with one life insurance and one general insurance company.
Step 2 – Appear and pass the IC – 38 exams conducted by insurance institute of India on behalf of the regulator IRDAI. Through the insurer you have registered as a part of step – 1 you can appear in the exam by submitting the prescribed fee. The paper will be multiple choice type of 50 questions of 1 mark each and will contain questions from basic areas of life, health and general insurance. Passing marks will be 35% i.e. 18 marks even if you get 17 marks one marks will be awarded as grace to help you pass the exam.
Step – 3: Complete the mandatory training of 50 hours from an IRDA approved training centre. For composite brokers the training duration is of 75 hours.
Step – 4: Apply for a license to IRDA with all the required documents and prescribed fee. The license granted to you will be valid for 3 years and you are ready to initiate the exciting and challenging work of insurance products advisory and sales.
Requirements to become a successful auto insurance agent – In the above section we discussed the steps to get a valid license for starting a career in the field of motor insurance agency. Being an insurance agent is a purely sales job and the commissions and renumeration is totally dependent on the amount of revenue the agent generates by doing sales. Below we discuss three points what are the traits and attributes that you will make successful in this business.
- Knowledge is virtue: Knowledge about the motor insurance products is essential and the candidate should keep this in mind starting from the time he starts preparing for the IC 38 exam. Along with the chapters of risk management, principles of insurance etc. the chapters in the book which pertains to motor insurance needs to be studied very well. Also, while attending the training all the concepts should be grasped very carefully and all relevant questions and doubts should be clarified from the instructor in the sessions itself especially in motor insurance. Knowing the concepts and motor policy construct well in the first place will help the agent to explain the same to the customer and speedily resolve their queries. It will be better if the motor insurance agent goes through the India motor tariff and policy wordings of a comprehensive motor policy of the insurer he is enrolled with.
- Passionate towards sales: The insurance agent should be passionate towards sales job and possess the quality of a salesman. Some of these qualities will to be well identified with the local market and local language, good communicator, patient, witty and with right attitude. It should be noted at the very beginning only that a sales job is not an easy one and to be successful as an agent one needs a lot of perseverance and hard work.
- Compliance: Insurance is a contract which is governed by law of the land and a rapidly changing regulatory landscape. Agent should have the habit of knowing the current regulations and always act within the scope of guidelines and rules in place. Discussing with the colleagues or checking of the IRDAI website at regular intervals will ensure that the agent is acquainted with motor TP rates and other related developments in the motor insurance segment. An auto insurance agent should know the claim process well and the documents required at the time of claim so that he can help the vehicle owner immediately at the time of an accident.