The Insurance Regulatory and Development Authority of India (IRDAI) sets the framework for how insurance agents operate. Whether you’re new or experienced, knowing the latest rules can save you from penalties, lost commissions, or license cancellation.
1. Licensing & Renewal
- You must hold a valid IRDAI license for life, general, or health insurance sales.
- Renewal is required every 3 years after completing 25 hours of training (or 50 hours for first-time applicants).
- Agents who fail to renew on time must reapply.
2. Single-Company Rule for Life Insurance
- You can represent only one life insurance company at a time.
- Switching requires surrendering your existing agent code.
- For general and health insurance, you can work with one insurer each.
3. Commission Regulations
- IRDAI caps the maximum commission rates depending on the product type.
- For term insurance, it’s usually up to 35% in the first year.
- Misrepresenting policy details to increase commissions is prohibited.
4. Disclosure Requirements
- You must clearly disclose the insurer’s name, policy features, and premium breakdown before selling.
- You cannot promise returns unless explicitly guaranteed in the policy document.
5. Ethical Sales Practices
- Avoid twisting (encouraging a client to drop an existing policy for a new one without valid reason).
- No forced selling or using misleading statements.
- Keep a record of all client communications.
6. Digital Sales & POSP
- POSPs can sell products from multiple insurers under a broker’s license.
- eKYC and digital signatures must be IRDAI-compliant.
Why It Matters
Breaking IRDAI rules can lead to license suspension, heavy fines, and loss of reputation.
To succeed, agents must combine compliance with effective sales tools like PlanMatch and WhatsApp Kit.
Call-to-Action
✅ Apply Now to Join Our Agent Network — get IRDAI-compliant training, tools, and ready-made scripts to grow your sales legally and effectively.
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