If you’re selling life, health, or general insurance in India, knowing the IRDAI rules for insurance agents isn’t optional — it’s essential.
The Insurance Regulatory and Development Authority of India (IRDAI) decides how agents work, how they earn, and what they must do to stay licensed.
Whether you’re new to the industry or a seasoned agent, following these rules will protect you from penalties, license cancellations, or lost commissions.
1. Licensing & Renewal Requirements
To sell insurance legally, you must hold a valid IRDAI agent license for your chosen category: life, general, or health insurance.
- Validity: Licenses are valid for 3 years.
- Renewal Training:
- Existing Agents — 25 hours of IRDAI-approved training.
- First-Time Applicants — 50 hours of training.
- Missed Renewal: If you fail to renew before expiry, you must apply again like a new agent.
2. Single-Company Rule for Life Insurance
IRDAI enforces a one-company rule for life insurance:
- You can represent only one life insurance company at a time.
- If you switch companies, you must surrender your existing agent code first.
- For general insurance and health insurance, you may work with one insurer each.
3. Commission Regulations & Limits
Your commissions are controlled by IRDAI to protect customers and maintain industry ethics.
- Term Insurance: Up to 35% commission in the first policy year.
- Rates vary depending on product type (endowment, ULIP, health, motor, etc.).
- Misrepresentation to boost commissions — like promising false returns — is strictly prohibited.
4. Mandatory Disclosures to Clients
- Disclose the insurer’s name, policy features, and premium breakup clearly before sale.
- Never promise investment returns unless they are guaranteed in the official policy document.
- Keep written or digital proof of your disclosures.
5. Ethical Sales Practices
- No twisting: Don’t convince clients to drop an existing policy for a new one without a valid reason.
- No force-selling: Clients must buy voluntarily, without pressure.
- Avoid misleading statements about benefits, returns, or coverage.
- Maintain records of all clients.
Digital Sales & POSP Regulations
The future of insurance sales is digital — but you must still follow the rules.
- POSP (Point of Sales Person) Agents can sell products from multiple insurers, but only under a registered broker’s license.
- eKYC (electronic Know Your Customer) and digital signatures must meet IRDAI compliance standards.
- Ensure all online sales platforms you use are IRDAI-approved.
Why IRDAI Compliance Matters for Agents
Breaking IRDAI rules can lead to:
- License suspension or cancellation
- Heavy monetary fines
- Loss of credibility in the market
Successful agents don’t just sell — they sell legally, ethically, and efficiently. Combining compliance with the right digital tools (like PlanMatch for comparing policies or the WhatsApp Kit for ready-to-send client messages) helps you grow faster without breaking the rules.
Start Your IRDAI-Compliant Insurance Career Today
Join the eBharat Digital Agent Network to get:
- IRDAI-approved training and compliance guidance
- Sales scripts that close deals faster
- Digital tools to work from anywhere
- Ready-made marketing material to attract clients
Apply Now to Become an IRDAI-Compliant Insurance Agent
