Guidelines on appointment of Insurance Agents, 2015


In view of the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 inter alia amending Section 42 of the insurance Act, 1938, relating to appointment of Insurance Agents, it has been decided to issue the following Guidelines in exercise of powers under section 42 of the Insurance Act, 1938 read with section 14 (2) (a) & (c) of the IRDA Act, 1999.

I. Short title and commencement.

  1. These guidelines shall be called “Guidelines on Appointment of Insurance Agents, 2015.
  2. These guidelines shall come into force with effect from 1st April     2015 and valid till the Regulations in this regard are issued

 II. Definitions: In these Guidelines, unless the context otherwise requires:-

  1. Act” means the Insurance Act1938 (4 of 1938) as amended from time to time
  2. Appointment Letter” means a letter of appointment issued by an insurer to any person to act as an insurance agent.
  3. Appellate Officer means an officer authorised by the Insurer to consider and dispose of representations and appeals received from an Insurance Agent.
  4. Insurance Agent” means an individual appointed by an insurer for the purpose of soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance;
  5. Authority” means the Insurance Regulatory and Development Authority of India established under the provisions of Section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
  6. Composite Insurance Agent” means an individual who is appointed as an insurance agent by two or more insurers subject to the condition that he/she shall not act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the monoline insurers.
  7. Centralised list of Agents” means a list of agents maintained by the Authority, which contains all details of agents appointed by all insurers.
  8. Centralised list of blacklisted agents” means a list of agents maintained by the Authority whose appointment is cancelled/suspended by a designated official of the insurer on grounds of violation of the code of conduct and/or fraud.
  9. Designated Official” means an officer authorised by the Insurer to make Appointment of an individual as an Insurance Agent.
  10. Examination Body” means an Institution, which conducts pre-recruitment tests for insurance agents and which is duly recognised by the Authority;
  11. Multilevel Marketing Scheme” means any scheme as defined in explanation to Section 42 (A) of the Insurance Act 1938 as amended from time to time

III. All words and expressions used herein and not defined but defined in the Insurance Act 1938, or in the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), or any other rules and regulations made thereunder shall have the meanings respectively assigned to them in those Acts, Rules and Regulations.

IV. Appointment of Insurance Agent by the Insurer:

  1. An applicant seeking appointment as an Insurance Agent of an Insurer shall submit an application in Form I-A to the Designated Official of the Insurer
  2. The Designated Official of the insurer, on receipt of the application, shall satisfy himself that the applicant:-
    • has furnished the Agency Application in Form I-A complete in all respects;
    • has submitted the PAN details along with the Agency Application Form;
    • has passed the insurance examination as specified under Clause VI;
    • does not suffer from any of the disqualifications mentioned in Clause VII
    • has the requisite knowledge to solicit and procure insurance business; and capable of providing the necessary service to the policyholders;
  3. The Designated Official shall exercise due diligence in verifying the agency application and ascertaining that the applicant does not hold agency appointment for more than one life insurer, one general insurer, one health insurer and one of each of the monoline insurers and is not in the centralised list of blacklisted agents.
  4. The Designated Official shall also verify
    • The centralised list of agents maintained by the Authority with the PAN Number of the applicant to ascertain the information as in subclause (3) above.
    • The centralised list of blacklisted agents maintained by the Authority to ascertain that the applicant is not blacklisted.
  5. The Designated Official on satisfying himself that the applicant has complied with all the conditions mentioned in Clause IV (2) to IV (4) above,  and also does not suffer from any of the disqualifications mentioned in sub-section (3) of Section 42 of the Act, may process the agency application and if found fit and proper, grant appointment to the applicant as an insurance agent by issuing an appointment letter within 15 days of receipt of all documents from the applicant. The Designated Official shall allot an agency code number to the appointed agent and the agency code number shall be prefixed by the abbreviation of the insurer’s name.
  6. The agency appointment letter issued as mentioned in sub-clause (5) above shall lay down the terms of appointment covering all conditions governing appointment and functioning of the applicant as an insurance agents and the code of conduct as outlined in Clause VIII. The letter of appointment shall be dispatched not later than 7 days after the appointment of the agent as mentioned in sub-clause (5) above.
  7. The applicant so appointed as an insurance agent shall be provided with an identity card, by the insurer which shall identify the agent with the insurer of which he/she is acting as an agent.
  8. The Designated Official shall enter and update the Agency Data of the applicant appointed as an Insurance agent in the Agency Portal maintained by the Authority through online mode immediately after the appointment of the agent. The online up-dation of Agency database records by the insurer is to maintain the updated centralised list of agents maintained by the Authority. The Designated Official shall be responsible for ensuring that the centralised list of agents is up to date and accurate.
  9. The Designated Official may refuse to grant Agency Appointment to any applicant if the applicant does not fulfil any of the conditions mentioned in these Guidelines. The Designated Official shall communicate the reasons for refusal for appointment as agent to the application writing in, within 21 days of receipt of the application.
  10. An applicant who is aggrieved by the decision of the Designated Official refusing to grant the agency appointment may submit a review application to the appellate officer of the insurer for review of the decision. The insurer shall designate an Appellate Officer to consider the review application of the applicant. The Appellate Officer shall consider the application and communicate the final decision in writing within 15 days of receipt of the review application

V. Appointment of Composite Insurance Agent by the insurer:

  1. An applicant seeking appointment as a ‘Composite Insurance Agent’ shall make a separate application to the Designated Official of respective life, general, health insurer or monoline insurer as the case may be, in the ‘Composite Agency Application Form I-B. The Designated Official of the respective insurers shall deal with the application in the manner and procedure outlined in Clause IV.

VI. Insurance Agency Examination. —

  1. An applicant shall pass in the Insurance Agency Examination conducted by the Examination Body in the subjects of Life, General, Health Insurance as the case may be, as per the syllabus prescribed by the Authority to be eligible for appointment as an insurance agent. The insurer shall provide the necessary assistance and guidance to the candidates to equip them with adequate insurance knowledge required to qualify in the agency examination.
  2. The applicant who has successfully passed the Insurance Agency Examination as mentioned in (1) above shall be issued a pass certificate by the Examination body. The pass certificate issued by the Examining body shall be in force for a period of twelve months, for the purpose of seeking appointment as an agent with any insurer for the first time.
  3. Only candidates who have qualified in the Insurance Agency Examination as mentioned above and who hold a valid pass certificate issued by the Examination Body shall be eligible to be considered for appointment as agents.

VII. Disqualification to act as an Insurance Agent:

The conditions for disqualification shall be as stipulated under Section 42 (3) of the Act.

VIII. Code of Conduct.

Every agent, shall adhere to the code of conduct specified below:-

  • Every insurance agent shall,
    1. identify himself and the insurer of whom he is an insurance agent
    2. show the agency identity card to the prospect, and also disclose the agency appointment letter to the prospect on demand;
    3. 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
    4. where the Insurance agent represents more than one insurer offering the same line of products, he should  dispassionately advise the policyholder on the products of all Insurers whom he is representing and the product best suited to the specific needs of the prospect
    5. disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect;
    6. indicate the premium to be charged by the insurer for the insurance product offered for sale;
    7. 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;
    8. bring to the notice of the insurer every fact about the prospect relevant to insurance underwriting, including any adverse habits or income inconsistency of the prospect, within the knowledge of the agent, in the form of a report called “Insurance Agent’s Confidential Report” along with every proposal submitted to the insurer wherever applicable, 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;
    9. 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;
    10. advise every prospect to effect nomination under the policy
    11. inform promptly the prospect about the acceptance or rejection of the proposal by the insurer;
    12. render necessary assistance and advice to every policyholder on all policy servicing matters including assignment of policy, change of address or exercise of options under the policy or any other policy service, wherever necessary;
    13. render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer;
  • No insurance  agent shall,-
    1. solicit or procure insurance business without being appointed to act as such by the insure
    2. induce the prospect to omit any material information in the proposal form;
    3. induce the prospect to submit wrong information in the proposal form or documents submitted to the insurer for acceptance of the proposal;
    4. resort to multilevel marketing for soliciting and procuring insurance policies and/or induct any prospect/policyholder to join a multilevel level marketing scheme.
    5. behave in a discourteous manner with the prospect;
    6. interfere with any proposal introduced by any other insurance agent;
    7. offer different rates, advantages, terms and conditions other than those offered by his insurer;
    8. demand or receive a share of proceeds from the beneficiary under an insurance contract;
    9. force a policyholder to terminate the existing policy and to effect a new policy from him within three years from the date of such termination of the earlier policy;
    10. apply for fresh agency appointment to act as an insurance agent, if his agency appointment was earlier cancelled by the designated official, and a period of five years has elapsed from the date of such cancellation;
    11. become or remain a director of any insurer;
  • 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;
  • Any person who acts as an insurance agent in contravention of the provisions of this Act shall be liable to a penalty which may extend to ten thousand rupees and any insurer or any person acting on behalf of an insurer, who appoints any person as an insurance agent not permitted to act as such or transact any insurance business in India through any such person shall be liable to penalty which may extend to one crore rupees.
  • The insurer shall be responsible for all acts and omissions of its agents including violation of code of conduct specified under these guidelines, and shall be liable to a penalty which may extend to one crore rupees.

IX. Authority’s right to inspect:

  1. The Authority may appoint one or more of its officers as an “Investigating Officer” to undertake inspection of affairs of an insurance Agent, to ascertain and see whether the business is carried on by him/her as per the Act, Regulations and the instructions issued by the Authority from time to time, and also to inspect the books of accounts, records and documents of the Agent. Provided such inspection will be limited to the matters pertaining to insurance business undertaken by the Insurance Agent.
  2. The Investigating Officer may, during the course of the inspection, examine on oath the insurance agent or any person who is found to be in possession or control of any books, accounts or other documents, and any statement made by the insurance agent or such person during such examination may thereafter be used as evidence in any proceedings under these Guidelines.
  3. The Authority may also call for any information from the insurance agent and he shall submit the same within the time lines referred therein by the Authority.
  4. The purposes of inspection under this Clause may include but are not limited to
    • Monitoring compliance with the provisions of the Act, rules, regulations etc.
    • Investigation of the complaints of serious nature received from any insured, any insurers, other stakeholders or any other individual on any matter having a bearing on the insurance related activities of the Agent; and
    • Investigating into the affairs of the Insurance Agent in the interest of proper development of insurance business or in protection of policyholder’s interest

X. Suspension of Appointment of an Agent:

  1. The appointment of an agent may be cancelled or suspended after due notice and after giving him/her a reasonable opportunity of being heard if he/she:
    • violates the provisions of the Insurance Act,1938 (4 of 1938), Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or rules or regulations, made there under as amended from time to time.
    • attracts any of the disqualifications mentioned in Clause VII.
    • Fails to comply with the code of conduct stipulated in Clause VIII and directions issued by the Authority from time to time.
    • Violates terms of appointment.
    • Fails to furnish any information relating to his/her activities as an agent as required by the Insurer or the Authority;
    • Fails to comply with the directions issued by the Authority;
    • Furnishes wrong or false information; or conceals or fails to disclose material facts in the application submitted for appointment of Agent or during the period of its validity.
    • does not submit periodical returns as required by the Insurer/Authority;
    • does not co-operate with any inspection or enquiry conducted by the Authority;
    • fails to resolve the complaints of the policyholders or fails to give a satisfactory reply to the Authority in this behalf;

XI. Manner of holding enquiry before/after suspension of appointment of the insurance Agent:

  1. The appointment of an insurance agent shall not be cancelled unless an enquiry has been conducted in accordance with the procedure specified in this clause.
  2. For the purpose of holding an enquiry under this clause, the insurer may appoint an Officer as an Enquiry Officer within 15 days of the issue of the suspension order;
  3. The Enquiry Officer shall issue a show cause notice to the insurance agentat the registered address of the insurance agent calling for all information / data as deemed necessary to conduct the enquiry and grant the insurance agent a time of 21 days from date of receipt of the show cause notice, for submission of his/her  reply and  such information / data called for;
  4. The insurance Agent may, within 21 days from the date of receipt of such notice, furnish to the enquiry officer a reply to the Show causenotice together with copies of documentary or other evidence relied on by him or sought by the Enquiry Officer;
  5. The Enquiry Officer shall give a reasonable opportunity of hearing to the insurance agent to enable him to make submissions in support of his/her reply;
  6. The insurance agent may either appear in person or through any person duly authorised by him to present his case, provided however that the prior approval of the Insurer is obtained for the appearance of the ‘Authorised Person’;
  7. If it is considered necessary, the Enquiry Officer may require the Insurer to present its case through one of its officers;
  8. If it is considered necessary, the Enquiry Officer may call for feedback/information from any other related entity during the course of enquiry;
  9. If it is considered necessary, the Enquiry Officer may call for additional papers from the insurance agent;
  10. The Enquiry Officer shall make all necessary efforts to complete the proceeding at the earliest but in no case beyond 45 days of the commencement of the enquiry: Provided that in case the enquiry cannot be completed within the prescribed time limit of  45 days as mentioned in (10) above; the enquiry officer may seek additional time from the Insurer stating the reason thereof;
  11. The Enquiry Officer shall, after taking into account all relevant facts and submissions made by the insurance agent, shall furnish a report making his/her recommendations to the Designated Official. The Designated Official shall pass a final order in writing with reasons. The order of designated official shall be signed and dated and communicated to the agent.

XII. Procedure for Cancellation of Agency:

On the issue of the final order for cancellation of agency of the insurance agent, the agent shall cease to act as an insurance agent from the date of the final order.

XIII.  Publication of order of suspension/ Cancellation.—

  1. The order of suspension/cancellation of appointment of the insurance Agent made under clause XI and XII  shall be displayed on website of the Insurer and updated in centralised list of agents  maintained by the Authority, so that registration of new business by the suspended/Cancelled agent is stopped forthwith by the insurers.
  1. On and from the date of suspension or cancellation of agency appointment, the insurance agent, shall cease to function as an insurance agent.

XIV. Effect of suspension/cancellation of Agency appointment.—

  1. On and from the date of suspension or cancellation of the     agency, the insurance Agent, shall cease to act as an insurance     agent.
    • The insurer shall recover the Appointment letter and Identity card from the agent whose appointment has been cancelled under these Guidelines within 7 days of issuance of final order effecting cancellation of appointment.
    • The insurer shall black list the agent and enter the details of the agent whose appointment is suspended/cancelled into the black listed agents database maintained by the Authority and the centralised list of agents database maintained by the Authority, in online mode, immediately after issuance of the order effecting suspension/cancellation.
    • In case a suspension is revoked in respect of any agent on conclusion of disciplinary action by way of issuance of a       speaking order by Designated Official, the details of such agent         shall be removed from list of black listed Agents as soon as the          Speaking Order revoking his/her suspension is issued.
    • The insurer shall also inform other insurers, Life or General or Health Insurer or mono line insurer with whom he/she is acting as an agent, of the action taken against the Agent for their records and necessary action.
  2. Nothing contained in the above regulation shall prevent the Authority to initiate penal action keeping in mind the extent of violation and level of violation as per the provisions of the Insurance Act, 1938, regulations and rules there under.

XV. Appeal Provision: An agent who is aggrieved by the order of cancellation can appeal to the insurer within 45 days of the order. The insurer shall appoint an Appellate Officer who shall examine the appeal and give his decision in the matter in writing within 30 days of the receipt of the appeal.

XVI. Procedure to be followed in respect of resignation/surrender of appointment by an insurance agent:

  1. In case an insurance agent appointed by an insurer wishes to        surrender his agency with his/her insurer, he/she shall surrender   his appointment letter and identity card to the designated official of       the insurer with whom he/she is currently holding agency.
  2. The Insurer shall issue the cessation certificate as detailed in Form 1-C within a period of 15 days from the date of resignation or surrender of appointment.
  3. An agent who has surrendered his appointment may seek fresh appointment with other insurer. In such a case, the agent has to furnish to the new insurer all the details of his/her previous agency and produce Cessation Certificate issued by the previous insurer issued in Form I-C, along with his agency application form.
  4. The insurer will consider the agency application as outlined in Clause IV after a period of NINETY DAYS from the date of the issue of the cessation certificate by the previous insurer.

XVII. General conditions for appointment of Agents by the insurer:

  1. The Insurer shall frame a ‘Board Approved Policy’ covering Agency Matters as listed in Annexure I and file the same with the Authority before 31st March every year. The guidelines for the ‘Board Approved Policy’ to be framed by the Insurer are mentioned in detail in Annexure – 1
  2. No individual shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of   each of other mono-line insurers
  3. Any individual, who acts as an insurance agent in contravention of the provisions of this Act, shall be liable to a penalty which may extend to ten thousand rupees.
  4. Any insurer or any representative of the insurer acting on behalf of the insurer, who appoints an individual as an insurance agent not permitted to act as such or transact any insurance business in India shall be liable to penalty which may extend to one crore rupees.
  5. No insurer shall, on or after the commencement of the Insurance Laws (Amendment) Ordinance 2014 appoint any Principal Agent, Chief Agent, and Special Agent and transact any insurance business in India through them.
  6. No person shall allow or offer to allow, either directly or indirectly or an inducement to any person to take out or renew or continue an insurance policy through multilevel marketing scheme.
  7. The Authority may through an officer authorized in this behalf, make a complaint to the appropriate police authorities relating to the entity or persons involved in the Multi-Level Marketing schemes
  8. Every insurer and every Designated Official who is acting on behalf of an insurer in appointing insurance agents shall maintain a register showing the name and address of every insurance agent appointed by him and the date on which his appointment began and the date, if any, on which his appointment ceased.
  9. The records as mentioned in (8) above shall be maintained by the insurer as long as the insurance agent is in service and for a period of five years from the cessation of the appointment.

XVIII. Existing Agents licensed by Authority

  1. Insurance agents holding a valid license issued by the Authority to act as insurance agents of different insurers andagents whose licenses are tagged to standalone health insurers / Agriculture Insurance Company Ltd under special permission granted by the Authority to Standalone Health Insurers /AIC of India shall be deemed to have been appointed by the respective insurers, and shall continue to operate as insurance agents of the respective Standalone Health insurers /AIC of India.
  2. The Designated Official of insurer shall recover the agency license and identity cards issued on behalf of the Authority to the agent before commencement of these Guidelines, and issue the agents, appointment letters and fresh identity cards under these guidelines within 90 days of commencement of these Guidelines.
  3. The agency license and identity card issued on behalf of the authority and recovered by the insurer and the fresh appointment letter issued by the insurer should be carefully preserved by the insurer for submission to the Authority as and when called for.

XIX. Power to remove difficulties:

In order to remove any difficulties in respect of the application or interpretation of any of the provisions of these Guidelines, the Chairperson of the Authority may issue appropriate clarifications or guidelines, as and when required.

80 Comments on "Guidelines on appointment of Insurance Agents, 2015"

  1.' Jawaid Alam Azad | March 25, 2015 at 2:48 pm |

    Kindly share List of Monoline Insurance Companies in India, Name Contact Numbers, Address

  2.' Pawan Kumar | March 26, 2015 at 7:46 am |

    Two monoline insurers, Agriculture Insurance Corporation and Export Credit Guarantee Corporation. Specialist heath insurers Star Health and Allied Insurance, Apollo Munich Health Insurance Max Bupa Health Insurance and Religare Health Insurance can also be considered as Mono line insurers but IRDA has a separate license for health insurance business.

  3.' T.K.Kalyanaraman | July 27, 2015 at 11:28 am |

    Dear Sir,
    we wish inform you that I am 14lakhs premium policy unfortunately family situation continued the not bussinesss past one year

    kindly find solution

  4. Respected sir/madam,

    I have already a lic agency, should I work with health insurance as well as mutual fund agent

    • You can also take agency of one general and one health insurance company. If you have earning only from agency then you should take agency of health insurance and mutual fund so that you can provide a comprehensive service to your customers and increase your earning.

  5. My relative had surrendered lic agency and received gratuity .Is it possible to get back agency again ??
    Thank you in advance.

  6. Dear Sir,

    I had taken Agency in LIC in the year 2001. Last two years I was not able do the minimum business and 1 Lakh. What is the new rule of 2015 for the agency year ending

  7. hello dear sir i have appointed as an lic agent in december 2015 and i want to know how many targets i have to acheve in year to continue as an lic agent i have not yet any polecy from appointed date to till date but i am forcely doing myself i want to know any problem with licence guide me

    • You have to do 12 lives and Rs. 100000 First year premium up to Dec 2015, how ever this is your first year, so if you do 6 lives and Rs. 50000 premium then your agency will be continued but you have to complete remaining of this year in next agency year with MBG of next year.


  9. sir, kindly advice can i work together for different general insurance companies

  10. If any insurance agent joins the same insurance Co as an employee then will he continue to get the commissions of the renewal commissions?

  11. If any insurance agent feels that the insurer or the managers with whom he or she is working in not honest or fair with him/ her then what should they do? Is there any guidelines for the rights of the agents?

  12. Sir I am working as an advisor with Sbilife for more than 15 years. Am I eligible for gratuity. Pl inform. Thank you

  13. My lic agency once reinstated in jan.2015 . What will be effect in my agency if I continue .

  14. Dear sir i have taken agents agency on jan 2015 so far i have completed 13 policy but the first year premiun is around 60,000/- so will my agency remain safe or still it will get suspended.

    • If 13 policies have minimum 6 lives then your agency will be continued for next year. But you have to complete remaining MBG criteria in the next agency year.

  15.' RAKESH KUMAR | October 26, 2015 at 1:26 pm |

    sir main lic agent hu main aapse ye puchna chahta hu ki mene november me lic join ki thi to november se november mera 1 saal count hoga yani agar main december me policy karta hu to wo mere 1st year me lagegi ya 2nd year me…..plz clerify sir….thanx in advance….

  16.' RAKESH KUMAR | October 26, 2015 at 1:31 pm |

    aur agar main november me policy karta hu to wo 1st year me count hogi ya 2nd year me….plz reply sir

  17.' RAKESH KUMAR | October 30, 2015 at 3:44 pm |

    sir main aapse ye puchna chahta hu ki lic me bm club member banne ke liye total kitne bime ka target hai…aur kitne saal me bm club member ban sakte hai…

  18. Dear sir can you please tell me what are the documents required to be taken from policy holder to do a policy of 11 yr old child NEW ENDOWMENT PLAN 817. and also which number form to be filled.

  19. I have taken LIC agency in April 2015 So far i hve not done single my agency will continue for next year.plztel me the minimum business target

    • Your agency will be active up to April 2016. Complete min 6 lives and 50000 First year premium to continue your agency to next year. Though MBG is 12 lives and 1 lac FYP.

  20. i am an agent in lic from last 4 years.
    but this year i have done only 5 policies
    if i will not be able to do more policies this year, will i lost my comissions from my previous policies??
    and suspended from lic??

    • If you do not fulfill the MBG criteria your agency will be terminated, and no commission will be payable thereafter because you have completed only 4 years in agency. You must do all the effort before giving it up.

  21. Dear sir
    I have taken Lic agency in dev 2014 so far i hv did 16 lic policies but my total 1 yr premium is around 60000 so will my license gt terminated…?? or i can hv chance to do buisness fr nxt yr.

  22. I am Development Officer in lIC can I appoint my brother as an agent ?

  23. Sir i am lic agent and i had done 16 policies with 160000 premium in 1st year but i have done only 6 policies with 50000 premium in 2 nd year so i want ask my ageny will be continue or not

  24. Sir howmany policies will do in 3 rd year

  25. Hello,

    After completing Three years Agency with (36 lives and 3laks First year premium), what about from 4th year onward. Shall we continue to do the same (12 lives + 1 Lak First year premium).

    If yes, Please tell me how many years to continue this, such that my agency will not be terminated, and I will receive commissions.

    • As per the agent regulation 1972, an agent is exempted from MBG if he has continually worked for the corporation as an agent for the period of
      1) Not less than 21 years, or
      2) at least 15 years and he is at least 55 years of age, or
      3) 15 years at any time, and earning minimum Rs. 40000 per annum as renewal commission

  26. Sir i had done 14 polices with 150000 premium in 1st year and i have done 7 policies with 60000 premium in 2 nd year then howmany policy i will do in 3 rd year

  27.' Konda Shiva Kumar | December 27, 2015 at 10:18 pm |

    I have completed 9 years of lic agency. Now in current year I have completed 9 lives with Rs.80000 of first year premium. Can my agency will be continued or it will be closed. Pls advise.

  28. Hi my lic agency 22 yrs comp now I am not doing business as per lic terms is it I can get gratuity

  29. This 12 yr done

  30. Sir, I am a government employee. How can my wife join as LIC agent. Please advise. Please guide the process.

    • Yes, your wife can become LIC agent, but while you fill the form for agency, LIC ask if spouse is in service and whether NOC required for agency from spouse’s employer. Please confirm from your department if they have any objection or not before applying for agency.

  31. sir
    I want to become an lic agent I have completed my mba and I want to study further
    I am living in delhi .can I join or not if yes than can I work in village area
    and please let me know what is the commission processors.

    • You can be a LIC agent and can continue you studies, there is no restriction of work area for agents, they can procure business from any where they want, and if you want to work in rural area then you will do more good. An agent of LIC gets 2 to 25% of first year premium and 5% there after till the policy continues.

  32.' SELVA KUMAR.S. | January 7, 2016 at 2:45 pm |

    i am lic agent selva kumar i am doing ist year 19 policies 2nd year 9 policies and 1 lakh premium enough 3rd year how many policy i do please reply me sir

  33. I AM LIC AGENT FROM THE YEAR 2003, MY AGENCY LICENSE LAPSED IN 2009 AND THEY DID NOT RENEW AS I HAD FAILED TO GET 12 POLICIES IN 2009. I have done lot of salary policy and i get my husband hereditary commission also. I was not getting mine lic commission and getting only hereditary commission. When enquired, they say in 2011-12 my commissiion earned is Rs. 2999.70/- and as it is below 3000/- has been commuted. No further commision will be paid and regd letter for the same is sent to my address, which i have not received till now, nor they have appraoched me at any time in this 3 years.

    But in bank i have received TOTAL rS. 3000/- INTO THE ACCOUNT, Even court gives 3 notices to attend for any case, how can lic just stop paying commision for want of 30 ps in a year, whereas next year it is much more and even last month i have paid renewal premium of more than 70,000/-. I approached branch manager but in vain. Please suggest how do i handle it. It is just a game in the branch to stop paying commision to the agents. We are still working in a hope that we will get commision. Collecting premiums and sending receipt to the insurer– servicing the insured with our own money. Please suggest.

  34. Sir, i going to join govrnment job .. if i leave the .. l.i.c agentship then i have my comission as a same condition….

  35. Dear Pawan kumar Sir,First of all I thank u for rendering service to others with good motive.I have one clarification from you.I have worked for 16 years as an LIC agent.From 1994 to 2010.2 times my agency was reinstated.Am I eligible for Gratuity and if so to what extent?I will be thankful on your kind reply.

  36. sir…. can i continued gov.. job with l.i.c agentship by delink my pen no,.. is it possible…and then what about comission…

  37. thanks sir…..

  38.' kapil kanungo | February 3, 2016 at 3:06 pm |

    I left my lic agency in written but not yet paid my gratuity til date by lic what is the rule of gratuity my agency period is 1996 to 2015. please reply.

    • Gratuity is payable after a agent completes 15 years of agency. Give you application for gratuity, amount will totally depend upon the commission and business you have procured up to maximum of Rs. 200000.

  39.' Deepak Dutta | February 5, 2016 at 9:54 pm |

    Sir, I have worked as a LIC agent from 2003 to 2009 and my agency got terninated for lack of businesses. Now I want to activate my license. Can I do it? If yes how?

  40.' sharad kapoor | February 8, 2016 at 12:14 am |

    what is the procedure to be a general insurance agent as on date. Can u give authorised training agencies addresses in Delhi.

  41.' YOGESH BHATI | February 9, 2016 at 6:24 pm |

    Nameste Sir,
    My brother was agent of LIC & UNITED INSURANCE
    My bhabhiji is agent of TATA AIG
    & my brother is no more ….
    my bhabhiji not continue with TATA AIG & continue with LIC & UNITED INSURANCE

    So please suggest as procedure for RESIGNATION/NOC/TRANSFER
    please send any form if required for the same like RESIGNATION APPLICATION , NOC FORMAT , TRANSFER APPLICATION etc

    • There are no specific form for NOC or transfer of agency (Unless any specific made by insurer it self), just write an application for NOC to TATA AIG. After NOC simply apply for new agency in LIC.

  42. sir may sep 2013 agency ka pahla policy dia our aprill 2014 to 15 policy dia lakin uskay bad mainay koi policy nahi diya kuch medical tritment ki karan may kam nahi kar saka lakin abhi may kam karna chahtahu. kiya mai uci code pay kam kar sakunga. total primium jama kia tha 71200 /-somthing Sum Assured karib 14,70,000/ Aur ek bat mera CSC/VLE bhi may csc ki tahat RAP ka online exam dia tha our pass bhi hui mujhay kush insurance ka link bhi dia hay kiya mai dono kam kar sakta hu MAY ASSAM KA EK CHUTA CHA GAON MAI REHNAY WALAA HO DISTRICT NAGAON VILL-GUIMARI PIN 782425

    • Please confirm the exact date of appointment as an agent in LIC. If you Joined LIC in Sep 2013 then you can still work on the same code, all you have to do is to give reinstatement application to your branch to start the work again. And if your CSC/VLE work is not any full-time (or any other restriction from them) work and not associated with any other life insurance company then you can work in both together.


  44.' suresh gurav | March 10, 2016 at 6:02 pm |

    i am lic agent working from past 23 years if i could not fill full my target of rs. 1lac premium and 12 polices till 31st march 2016, what would be the status of my agency? whether it will be terminated or will remain in force.
    please advise.

    • As per the agent regulation 1972, an agent is exempted from MBG if he has continually worked for the corporation as an agent for the period of
      1) Not less than 21 years, or
      2) at least 15 years and he is at least 55 years of age, or
      3) 15 years at any time, and earning minimum Rs. 40000 per annum as renewal commission

      Please confirm this with sales department of your branch.

  45. Sir, I have been working as an LIC agent and the license is on my name from October 2011. But I am not doing well in this business and got offer from bank for the post of Relationship manager with good salary. Can I join this company without surrendering my IRDA license. KIndly reply.

    • If your bank has a tie-up or its own insurance company, then you might have to stop working with LIC, because it leads to the conflict of interest. Ask your employer before you join it.

      • Sir, if I stop working with LIC. Will my future commission would stop or it would continue and do I need to cancel my IRDA license too?

        • You don’t have to cancel IRDA license in either way. If you have completed full 5 years in your LIC agency, then you are eligible for renewal commission, else not. Just write a simple application to branch manager to make your agency status ERC (Eligible for renewal commission) after termination or resignation.

  46.' Pushpanand Dimri | March 18, 2016 at 9:55 am |

    I start as agent with LIC August 2010, and I worked with LIC 2014. I did not complete 12 policy in 2015. How many is my agency year.

    • 4 agency years
      August 2010-August 2011
      September 2011-August 2012
      September 2012-August 2013
      September 2013-August 2014

      5th also if 12 lives and 1 lac FYP done in
      September 2014-August 2015

  47.' kailash chandra bhagat | March 21, 2016 at 1:03 pm |

    what is processor change General insurance companies as agent please tell me

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