Agency license , Code

of conduct
& Agency rulesA

1.(a) Agent should obey the rules of

IRDA ( licensing of insurance Agents)
regulation act 2000 ,They shall come
into force on the date of their
publication in Gazette ie 14th july,
2000. Further these regulations
called the insurance regulatory &
Development Authority (Licensing of

They shall come into force w.e.f. 1 st

November,2007.
They Agent also should obey the
Agents Regulations Act 1972.
(b) IRDA (Policy holders protection )
act 2002.
(c) IRDA ( Insurance advertisement &
publications ) act 2000.

Qualifications necessary before giving a

license
is :
1. He / She must be 18 years old.
2. Have passed at least 10th standard/12th
standard as the case may be.
3. Have undergone practical training of 50
hours/75 hours as the case may be, from IRDA
approved training Institute / centre.
4. Has to deposit Rs.350/ pre- recruitment Exam
fee and Rs150/ For training fee.

5. He / She have to fill up the pre- recruitment

forms
A. Sponsorship Form
B. Annexure I
C. Photos
Immediately completing his IRDA training
he has to pass out his IRDA exam. Which is
conducted by a recognized company.

The license once issued, can be

cancelled whenever the person
acquires a disqualification:
1. Application for renewal have to made
at least thirty days before the expiry of
license , along with renewal fee of
Rs.250/2. If the application is not produced within
stipulated time than within thirty days
before the expiry of license , an
additional fee of Rs.100/- is payable.

3. If the application made after the date of expiry,

it would be normally refused. If yes, in certain
conditions than an additional fee of Rs 750/will be charged and surety will not be there.
4. The agent have to complete 25/50 hours of
practical training as the case may be.
5. Insurer who select agents for appointment,
make arrangements for training ,for appearing
in the prescribed examinations, and obtaining
the license from IRDA.

After passing the IRDA Examination the

candidate have to submit the following
requirements for issuance of a license :
1. Application for agency with fee Rs. 250/2. Photographs
3. Certified copies of his educational qualifications
4. Residence proof
5. Proof of identification
6. Development officer`s report . 7. Form of
nomination. 8. Proof of passing the exam.

Role of Insurance Agent

1. Every agent will do not less than

minimum business guarantee
and keep in force already
procured business.
2. (a) Agent should keep in mind
the capacity of
L A for payment of premium.
(b) He should intimate to the
insurer all the risk bearing
factors about the L A before

(c) He will try to admit the date

of birth of L A at the time of
accepting the case.
(d) He will not interfere in the
others business.
3. He will keep in touch himself
with his earlier customers to
keep in force his previous
business.
(a) He will consult to the every
customer for nomination and
assignment.

(b) He will try to deposit all the due

premiums of his customers within
stipulated time or within grace
period.
(c) He should try not to become a
policy lapse / paid up.
(d) He will help the policy holders in
their claim settlement, also help in
filling claim related forms .
Premium
Due List

4. He is not authorized to
collect any renewal
premium , accepting any
risk from policy holders
for corporation, but the
corporation can
authorize an agent for
collecting the renewal
premium from policy
holders.
5. He can not use the
logo of corporation for

Code of conductEvery person holding a

license, shall adhere to the code of conduct
specified
below:(i) Every insurance agent shall,
(a) identify himself and the insurance company of
whom he is an insurance agent;
(b) disclose his license to the prospect on
demand;
(c) disseminate the requisite information in
respect of insurance products offered for sale by
his

insurer and take into account the needs of the

prospect while recommending a specific
insurance plan;
(d) disclose the scales of commission in respect of
the insurance product offered for sale, if asked by
the prospect;
(e) indicate the premium to be charged by the
insurer for the insurance product offered for sale

(f) explain to the prospect the nature of

information required in the: proposal form by the
insurer,
and also the importance of disclosure of material
information in the purchase of an insurance
contract;
(g) bring to the notice of the insurer any adverse
habits or income inconsistency of the prospect in
the form of a report (called Insurance Agents
Confidential Report) along with every proposal
submitted to the insurer,

and any material fact that may adversely affect

the underwriting decision of the insurer as
regards acceptance of the proposal, by making all
reasonable enquiries about the prospect;
(h) inform promptly to the prospect about the
acceptance or rejection of the proposal by the
insurer (i) obtain the requisite documents at the
time of filing the proposal form with the insurer;
and other documents subsequently asked for ,by
the insurer for completion of the proposal

(j) render necessary assistance to the

policyholders or claimants or beneficiaries in
complying with the requirements for settlement
of claims by the insurer;
(k) advise every individual policyholder to effect
nomination or assignment or change of address
or
exercise of options, as the case may be, and offer
necessary assistance in this behalf, wherever
necessary;

(a) solicit or procure insurance business without

holding a valid license;
(b) induce the prospect to omit any material
information in the proposal form;
(c) induce the prospect to submit wrong
information in the proposal form or documents
submitted to the insurer for acceptance of the
proposal;
(d) behave in a discourteous manner with the
prospect

(e) interfere with any proposal introduced by any

other insurance agent;
(f) offer different rates, advantages, terms and
conditions other than those offered by his insurer;
(g) demand or receive a share of proceeds from
the beneficiary under an insurance contract;
(h) force a policyholder to terminate the existing
policy and to effect a new proposal from him
within three years from the date of such
termination

(i) apply for fresh license to act as an insurance

agent,
if his license was earlier cancelled by the
designated
person, and a period of five years has not
elapsed
from the date of such cancellation; will not be
issued
the new/ fresh license.

(j) become or remain a director of any insurance

company;
(iii) Every insurance agent shall, with a view to
conserve the insurance business already procured
through him, make every attempt to ensure
remittance of the premiums by the policyholders
within the stipulated time, by giving notice to the
policyholder orally and in writing.

Cancellation of license The designated

person may cancel a license of an insurance
agent, if the
insurance agent suffers, at any time during
the currency of the license, from any of the
disqualifications
mentioned in sub-section (4) of section 42 of
the Act, and recover from him the license and
the identity card issued earlier.

A person with the following

disqualifications is debarred from holding
a license:
1. He has been found to be of unsound mind
by a court of competent jurisdiction.
2. He has been found guilty of criminal
breach of trust, misappropriation,
cheating, forgery or abetment or attempt
to commit any such offence.

Issue of duplicate license.The Authority

may issue a duplicate license, replace a
license lost, destroyed, or mutilated on
payment a fee of rupees fifty.
Non-application to existing insurance
agents. Nothing contained in Regulations 4
to 6 of these
Regulations shall apply to the existing
agents before the commencement of these
Regulations

THANKS !