Being an HDFC Life agent is not just about selling policies—it’s about selling them ethically and responsibly. To ensure customer protection and professionalism, the Insurance Regulatory and Development Authority of India (IRDAI) has issued strict guidelines that every agent must follow.
Failing to follow these rules can result in license cancellation, penalties, or even legal action. This guide breaks down the key IRDAI guidelines every HDFC Life agent must know in 2025.
1. Code of Conduct for Agents
IRDAI has a clear code of conduct that agents must follow:
- Always act in the best interest of the customer.
- Avoid misrepresentation or exaggeration of policy benefits.
- Disclose all terms and conditions clearly.
- Maintain confidentiality of customer information.
Breaking this code can result in your license being suspended.
2. Mandatory IC-38 License
- No person can act as an insurance agent without clearing the IC-38 exam and obtaining an IRDAI license.
- Renewals must be done every 3 years with refresher training.
3. Disclosure Rules
Agents must clearly explain:
- Premium amount, payment frequency, and duration.
- Exclusions (what the policy does NOT cover).
- Claim settlement process and conditions.
Customers should never feel “cheated” after buying a policy.
4. Prohibition of Mis-Selling
- Mis-selling (e.g., promising higher returns than actual, hiding exclusions, or selling the wrong policy) is a punishable offence.
- IRDAI requires insurers and agencies to monitor and audit sales practices.
5. KYC and Anti-Money Laundering (AML)
Agents must:
- Collect valid KYC documents (Aadhaar, PAN, proof of address).
- Report suspicious transactions.
- Ensure compliance with AML guidelines.
6. Grievance Redressal Process
Agents must inform customers about:
- HDFC Life’s customer helpline.
- IRDAI’s Integrated Ombudsman scheme for complaints.
- Timelines for complaint resolution.
Customers should know they have legal avenues if issues arise.
7. Commissions & Transparency
- Agents must earn commissions strictly as per IRDAI’s prescribed structure.
- Hidden charges or “extra” fees cannot be collected from clients.
- Disclosure of commission structure is encouraged to build trust.
Agent Do’s & Don’ts
| Do’s | Don’ts |
|---|---|
| Explain benefits + exclusions clearly | Don’t exaggerate returns |
| Collect valid KYC documents | Don’t process fake applications |
| Maintain client confidentiality | Don’t share client data |
| Sell based on customer needs | Don’t force unsuitable plans |
Case Example
Sunil, a new agent, promised a client that a ULIP would give “guaranteed returns.” When the client discovered market risks, they filed a complaint with IRDAI. Sunil’s license was suspended for mis-selling.
👉 Lesson: Always be honest and transparent.
Why This Matters
In 2025, customers are more informed and IRDAI’s monitoring is stricter than ever. Following guidelines not only protects your license but also builds long-term trust and referrals.
Interlinking Suggestion
👉 Next, read: Why Selling Insurance is More Than Just Commission
CTA
🚀 Want to become an ethical, successful HDFC Life agent with full mentorship?
Apply Now to Join Our Agent Network
