How to become IRDAI Corporate Insurance Agent

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How to become IRDAI Corporate Insurance Agent

Have you ever imagined yourself selling life or health insurance policies to individuals on behalf of an insurance company? If so, then you should consider obtaining a corporate insurance license from the Insurance Regulatory and Development Authority of India (IRDAI). However, before applying for this license, you need to become eligible for it. There are certain requirements which need to be fulfilled first, just like in the case of any profession. In this blog post, we’ll explain how to become IRDAI corporate insurance agent!

What is Corporate Insurance Agent

A corporate insurance agent refers to an individual who represents an insurance company. This is opposed to an insurance broker who represents his clients. 

An insurance agent sells insurance policies to individuals and entities on behalf of the insurance company that he is employed under. Generally, on selling insurance policies, the insurance agent gets commission and incentives. This makes the profession of corporate insurance agent a lucrative choice for those who are good at sales and have excellent communication skills. 

Insurance Corporate Agent Registration

According to the provision of Insurance Regulatory and Development Authority of India (Registration of Corporate Agents) Regulations, 2015 effective from 1st April, 2016, any individual who wants to carry the business of a corporate agent is required to obtain registration from the insurance industry regulator IRDAI.

The term "corporate agent business" refers to the pursuit and management of insurance business for any of these categories: health, life, and general. As a result, a Corporate Agent may only handle Life, General, Health, or Composite, doing all category solicitation and servicing at one place. 

Categories of Corporate Insurance Agent License

An individual can apply for corporate agent license for any of the following categories:

• Corporate Agent - Life

• Corporate Agent - General

• Corporate Agent - Health

• Corporate Agent - Composite

Significance of Corporate Agent License

For anyone who wants to become a corporate insurance agent, the insurance agent license holds a great significance as it is a mandatory requirement. Obtaining this license is essential due to the following reasons:

Legal Requirement

Having a corporate agent license ensures that you are authorized to act on behalf of the insurance company. This license makes sure you fulfill the legal requirements and are authorized to engage in various activities pertaining to insurance such as sales, marketing and service of insurance products.

Solicitation of Products

The license helps insurance companies reach a wider consumer base by enabling corporate agents to solicit insurance products on their behalf.

Regulatory Oversight of IRDAI

Ensuring adequate supervision and control in the insurance industry is made possible by the corporate agent license issued by IRDAI. It helps to protect the policyholders' and insurers' interests by assisting in the prevention of insurance fraud and malpractices.

Eligibility Criteria for Insurance Agent Licence

To secure a Corporate Agent Licence in India, an individual must meet the following eligibility criteria:

• The individual must be at least 18 years old

• He should have a minimum educational qualification of 10th class

• He should possess a valid PAN card

• He should have completed compulsory 15-hour training specified by IRDAI.

• Each Indian state has an insurance business license. The individual must qualify for the state-level exam in order to get this license.

Documents Required for Corporate Agent License

Given below is a list of documents required for the application for corporate agent license in India:

• Profile of the Company 

• Form A 

• Certificate of Registration 

• Organization Chart (should clearly specify the position of Principal Officer i.e. PO, in the organization)

• Latest Net Worth Certificate 

• Memorandum and Articles of Association 

• Training, Examination and educational documents of PO 

• Fit and proper criteria undertaking of all Directors and PO 

• Board Approved Policy (The Policy shall include the approach to be followed by the corporate agent in having single or multiple tie-ups, the partners in the tie-ups, the business mix, the type of products sold, grievance redressal mechanism (Refer Reg. 14 (iv) of CA Regulations, 2015) and reporting requirements etc.)

• Code of conduct undertaking 

• In-principle agreements with insurers / Consent and in-principle agreement copies received from insurers 

• Documents in support of infrastructure (lease agreements / ownership documents, equipment, manpower etc.)   

• Business Plan and business Strategy to be followed by the entity in procurement of insurance business.

• Declarations on

•  FDI in the capital of the entity,

• Appointment of PO exclusively to oversee the insurance activities and

• Declaration that the entity is not registered with other regulators in the financial sector, if applicable.

• Projected P&L and Balance Sheet for the next three years and Audited Financial Statements for the last three years.

Procedure for Obtaining a Corporate Agency Licence

The procedure to apply for a Corporate Agent Licence in India takes place in the following manner:

Application Submission

The applicant must file an application for the corporate agent license using ‘Form A’ as per Schedule - I. Along with the application form, the prescribed fee must be paid through an account payee draft in favor of 'The Insurance Regulatory and Development Authority of India.’ The fee can be transferred through electronic mode as well.

If the applicant is an institution in the financial sector, it is crucial to obtain a No Objection Certificate (NOC) for conducting transactions in corporate agency business. However, an NOC is not needed if the entities are already licensed under the 2002 regulations.

Category Selection

At the time of making the application, one of these following categories must be selected: Corporate Agent (General Insurance), Corporate Agent (Health Insurance) or Corporate Agent (Composite Insurance).

Scrutiny of Application

The application for a corporate agent license will be scrutinized by IRDAI. The applicant must make sure they are not engaged in any other insurance businesses such as insurance marketing firm, insurance broking firm, etc. In case such a conflict exists, the application will be assessed on its merits.

Additional Information

The Insurance Regulatory and Development Authority of India may request further information and documents from the applicant if needed. The application may be rejected if it does not meet the specified requirements.

Registration Fee Payment

If the application is approved by the insurance regulator, registration fee must be paid along with the applicable taxes within 15 days of receiving the communication by IRDAI for grant of registration.

Grant of Corporate Insurance Agent License

Once IRDAI is satisfied with the application, the applicant will be granted a certificate of registration in ‘Form-B.’ The specific category in which the registration has been granted will also be informed by the authority to the applicant.

Registration in Additional Categories

Once the applicant has been holding the corporate agent license for over a year, he can apply for registration under another category as long as the regulatory requirements are complied with.

Conclusion

It is necessary to obtain a corporate insurance license from IRDAI if you want to work as an insurance agent or run a corporate insurance agency. To apply for this license, make sure you fulfill the eligibility requirements and have the required documents. If you need a helping hand in applying for a corporate insurance agency license, connect with Registrationwala. We’ll file the application form on your behalf with IRDAI and make sure your license is obtained without any hassle.

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