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In the insurance field, there are multiple insurance agents and brokers, and their requirements to get the certifications are also different from each other. From all these types, here in this article, two categories of agents will be discussed one is a corporate agent and the other is an individual agent.
How corporate agent and the individual agent is different? What are the differences between corporate agent licenses and individual agent licenses will be discussed.
A corporate agent is an organization or company that represents an insurance company. A corporate agency not only represents the insurance company but sells the policies on behalf of insurance companies. For instance, when a company sells health insurance or life insurance on behalf of an insurance company, then the seller is a corporate agent.
However, to work on behalf of an insurance company, a corporate agent requires a corporate agency license. Other than companies, banks can also obtain a corporate agency license. An agreement between an insurance company and the bank is known as bancassurance or partnership.
Generally, a corporate agent can represent three insurers in each general, life, and health. Therefore, a corporate agent fits best in the interest of some insurance companies.
An individual agent is a person who sells the insurance policies of multiple insurance companies to the public and provides after-sales service including assisting at the time of claim.
Before selling insurance policies, an individual agent must undergo requisite training, and examination, and get a license from IRDA. After that, this license can be used for selling life insurance or general insurance, or both. Overall, an individual agent can sell policies of:
As working with multiple companies insurance agents have a huge volume of business. They get a commission on every policy sold. For customers reaching out to an individual agent is beneficial because they get quick research of multiple policies and prices across various platforms.
Both insurance agents license are different in their own way, check the major differences between corporate agent licenses and individual agent licenses below:
1. Capital Requirements
As per the new regulations, a Corporate Agent selling insurance policies must have a minimum share capital or contribution of Rupees Fifty Lakhs and it should maintain a net worth of Rupees Fifty Lakh at all times. For the Individual Agent license the applicant must have a capital requirement of Rupees 75 Lakhs before applying.
2. Application Fees
A corporate agent has to pay a non-refundable application fee of Rupees 10 thousand with applicable taxes at the time of corporate agent registration India. The application fee for an independent insurance agent is Rs. 25 thousand.
3. Deposit Requirements
To apply for corporate agent registration in India, the applicant does not need to deposit any amount to the bank. To get an insurance agent license the applicant has to submit an amount of Rupees 10 Lakhs to the scheduled bank.
4. License Renewal Fees
The applicant has to pay Rupees 25 thousand with applicable taxes for granting the renewal of the application. An independent insurance agent has to pay Rupees 1 Lakh for the renewal of the insurance agent license after 3 years.
5. Application Form
The application for a corporate agency license must be made in FORM A of Schedule - I. For the insurance agent license the application must be made in FORM B - Schedule I.
6. Renewal Form
The application for corporate license renewal must be made 30 days before the expiry date in FORM A. For individual agent license the application must be in FORM K.
For insurance agents who want to start their insurance services, we at Registrationwala help them to provide complete assistance to get a corporate agent license and an independent agent license. Our services include:
Connect with us if you have any questions regarding the following licenses.
Also read: What Are The Responsibilities and Duties of a Mutual Fund Distributor License Holder
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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