Course for becoming an insurance advisor
If you wish to become an insurance advisor, you would have to clear the Insurance advisor certification examination as prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) to get a license to sell insurance policies. There are multiple ways to become an insurance advisor and the course varies accordingly.
The new way to sell insurance: As a PoSP
A POSP (point of sale person) is also a type of an insurance advisor who can sell both life and general insurance policies of multiple companies as the PoSP Guidelines of the IRDAI. Mintpro is an online platform which allows individuals to enrol with it and become a POSP (point of sale person).
The certification course for PoSP:
The insurance advisor certification course for becoming a POSP (point of sale person) is short and simple. Any individual can enrol for the certification course if he is more than 18 years old and has cleared Class 10.
The course is taught through online videos and tutorials which can be accessed through the candidate’s computer or smartphone from the comfort of his/her own home or office. The course includes knowledge about the following –
- → Concept and working of insurance
- → The insurance market in India
- → Principles on which insurance works
- → Classification of insurance
- → Health and personal accident insurance
- → Documents required to apply for an insurance policy
- → Premiums
- → Claims
- → Protection of policyholder’s interests
- → Grievance redressal mechanisms
- → AML and KYC guidelines
- → Do’s and Don’ts of a PoSP
You can see a sample video here.
After the completion of the online certification course, there is an online exam. If the individual clears the exam with a minimum of 40%, he can become a POSP (point of sale person) with Mintpro.
The PoSP Certification course is not a complicated certification course. All you need to do it join Mintpro, take an online certification course and become a POSP (point of sale person).
The traditional way to become an insurance advisor:
However, if you wish to become an insurance agent directly with LIC by enrolling under a DO (development officer), then you would have to undergo a mandatory 25 hours of training and then appear for the IC 38 examination. Once you clear the IC38 examination, you can become an insurance agent and start selling insurance policies.
- The study material of the course IC 38The certification course is contained in a book called IC 38. Every individual who wants to become a life insurance agent or a general insurance agent has to study this book.The important topics of the course include the following –
- The basic concept of insurance:
- What is insurance all about?
- How does insurance work?
- Necessity of insurance
- The basic principles and concepts of insurance: This topic discusses the basic principles of insurance which each insurance agent should be aware of:
- The principle of Utmost Good Faith- Concept, meaning, application
- The principle of Insurable Interest- Concept, meaning, application
- The principle of Indemnity- Concept, meaning, application
- Other concepts that is important for insurance agents to know like:
- Proximate Clause
- What makes insurance a legally binding contract under the law?
- The various types of insurance plans: This topics mainly talks about the various types of insurance policies that every insurance agent must be aware of.
- The life insurance agent needs to know about all the types of life insurance plans available in the market
- The general insurance agent needs to know about all the types of general insurance plans available in the market
- Claims This topic talks about what is an insurance claim, its relevance, importance and how an insurance agent can play a crucial role in settling the same seamlessly. It also talks about the documents necessary for every insurance agent to know about in order to settle a claim.
- Underwriting: This topic states how the insurance company assesses the risk before issuing any insurance policy. This works differently for different types of policies and every insurance agent must be aware of the process in order to get a policy issued. An insurance agent is considered to be a primary underwriter as he meets face-to-face with the client. Hence underwriting is an important concept for every insurance agent to be aware of.
- The professional insurance market: This topic states the overall structure of the insurance market and how insurance agents are required to conduct business.
- Work ethics: This topic details the different legislations which govern the work ethics of insurance agents as well as insurance companies, which you need to follow diligently.
- Grievance redressal and complaint handling: This is a very important topic. Grievance Redressal is a team which handles all complaints that a customer may have with the insurance company or the intermediary. Thus, this topic outlines the process using which policyholders can raise and get their grievances settled with respect to insurance. An insurance agent has a huge role to play in grievance redressal and complaint handling of the customer and this topic outlines the same.
Sample questions of the insurance agent certification course: IC38
General insurance exam for a general insurance agent–
- 1. Which among the following is a method of risk transfer?
- Bank FD
- Equity shares
- Real estate
- 2. In the customer relationship, the first impression is created:
- By being confident
- By being on time
- By showing interest
- By being on time, showing interest and being confident
- 3. Which of the following factors does not affect the morbidity of an individual?
- Spouse job
- Residence location
- 4. According to the principle of indemnity, the insured is paid for:
- The actual losses to the extent of the sum insured
- The sum insured irrespective of the amount actually spent
- A fixed amount agreed between both the parties
- The actual losses irrespective of the sum assured
- 5. Under which of the following condition, is domiciliary hospitalization is covered in a health insurance policy?
- The condition of the patient is such that he/she can be removed to the Hospital/Nursing Home, but prefer not to
- The patient cannot be removed to the Hospital/Nursing Home for lack of accommodation therein
- The treatment can be carried out only in hospital/Nursing home
- Duration of hospitalization is exceeding 24 hours
Life insurance exam for a life insurance agent:
- 1. Who among the following is most likely to buy variable life insurance?
- People seeking a fixed return
- People who are risk-averse and do not dabble in equity
- Knowledgeable people comfortable with equity
- Young people in general
- 2. Which of the below losses are covered under keyman insurance?
- Property theft
- Losses related to the extended period when a key person is unable to work
- General liability
- Losses caused due to errors and omissions
- 3. Which of the following is not a factor in determining life insurance premium?
- Management expenses
- 4. During the _________ period, if the policyholder has bought a policy and does not want it, he/she can return it and get a refund
- Free evaluation
- Free trial
- 5. When is a policy deemed to have lapsed?
- If the premiums are not paid on the due date
- If the premiums are not paid before the due date
- If the premium has not been paid even during the days of grace
- If the policy is surrendered
IC 38 IRDAI exam for an insurance agent
After the individual is trained in the certification course, an exam is conducted which is prescribed by the Insurance Regulatory and Development Authority of India (IRDAI). If the individual scores at least 40% in the exam, he can obtain an insurance agent license and sell insurance policies.