How to become a National Insurance Agent?

How to become a National Insurance Agent?

If you are an insurance agent looking for lucrative earning opportunities, collaborating with a national insurance company as a national insurance agent can offer several advantages for your business. Get to know where each aspect of becoming a National Insurance agent.

Quick Link: Become an Insurance agent

About National Insurance

National Insurance Company is one of the most popular non-life insurance companies in India having worldwide offices. In the past years, it made a major mark in the minds of customers. National Insurance Company Limited (NICL) stands tall as one of the prominent insurance providers in the country. The company offers a range of insurance products, including health, motor, travel, and property insurance. The non-life insurance company was established in 1906 to fulfil the nationalist aspiration for Swaraj and nationalized in 1972. The company is a state-owned general insurance company in India.

Steps to become a National Insurance agent in India

Becoming a National Insurance agent in India involves certain steps and qualifications. National Insurance Company Limited (NICL) is one of the prominent insurance companies in the country.

Here is a general guide on how to become a National Insurance agent:
  • Register with National Insurance Company
  • Submit the required documents
  • Get an insurance license
  • Apply for an agent license
  • Apply for a salesperson license
  • Pass the exam.

Eligibility Criteria to become a National Insurance Agent in India

The path to becoming a National Insurance agent begins with meeting certain eligibility criteria. Prospective agents must be at least 18 years old and possess a minimum educational qualification of 10th standard, though some states may require higher education.

National Insurance-Specific Training:

National Insurance may provide additional training specific to its products and processes. This phase ensures that agents are not only acquainted with general insurance principles but are also well verse in the intricacies of the company’s offerings.

How a National Insurance agent earns as a PoSP agent

A Point of Service Person (PoSP) agent, including a National Insurance agent operating in this capacity, earns through commissions and incentives based on the sale of insurance products.

Here is a breakdown of how a National Insurance agent earns as a PoSP agent:

Commission on Premiums:

The primary source of income to work as an insurance PoSP agent is the commission earned on the premiums of insurance policies sold. When the agent successfully sells a National Insurance policy, they receive a percentage of the premium paid by the policyholder. This commission can vary depending on the type and term of the policy.

Product-specific Commissions:

Different insurance products offer varying commission rates. For example, health insurance policies might have a different commission structure compared to motor or property insurance policies.

Renewal Commissions:

Many insurance policies have a renewal component. When you become a PoSP insurance agent, you can earn renewal commissions when policyholders renew their insurance policies. This provides a source of passive income for agents who have built a solid client base.

Cross selling and Up-selling:

Another benefit of becoming a PoSP agent of a National insurance agent is that one can increase their earnings by cross-selling or up-selling additional insurance products to existing clients. For example, if an agent initially sells a motor insurance policy, they may later recommend and sell a health insurance policy to the same client. As a PoSP agent, you can sell both the National Insurance policies and other policies.

Customer Retention:

Retaining clients over the long term is crucial for sustained income. Agents who provide excellent customer service, maintain strong relationships with clients, and ensure a smooth claims process contribute to client satisfaction and potential referrals, leading to additional business and income.

Bottom Line

Becoming a National Insurance agent in India is a journey that blends education, professionalism, and the drive to secure the future for individuals and businesses alike. As the insurance landscape continues to evolve, agents play a pivotal role in guiding clients through the intricacies of risk management and financial planning. The path may be challenging, but the rewards are substantial, in terms of both personal growth and contribution to the well-being of others. Therefore, for those with a passion for finance and a desire to make a positive impact, the role of a National Insurance agent in India beckons as a promising and fulfilling career choice.

FAQs

What is a National Insurance Agent?

A National Insurance Agent is an individual authorized to sell insurance policies on behalf of the National Insurance Company or any other authorized insurance provider.

How is becoming a PoSP better than a National Insurance agent is?

Becoming a PoSP is better than becoming a National Insurance agent. PoSP (Point of Selling Person) is a type of insurance agent introduced by IRDAI. A PoSP agent may sell different kinds of insurance policies directly to the consumer. An insurance agent may also sell the policies to consumers. However, an insurance agent may sell the policies for only one insurance company. At the same time, a PoSP agent may sell the policies for many companies. He may earn a commission on every policy he sells. Moreover, it is easy to become a PoSP agent. A person who is 10th passed and 18 years old may become a PoSP agent by attending the training session and clearing the exam. An insurance agent may also become a PoSP agent by clearing the PoSP exam.

Q. What does the National Insurance agent commission mean?

A. An amount earned by the agent on the cover policies he sold. The commission is the percentage of the premium paid by the buyer.

Q How to become a National Insurance Agent?

Becoming a national insurance agent is not a difficult task. You will just need to go through the following steps:

  • Get your license
  • Register with a broker or insurance company
  • Get an insurance license
  • Apply for an agent license
  • Apply for a salesperson license
  • Pass the exam.
What is IRDAI certification as an insurance agent?

The Insurance Regulatory and Development Authority (IRDAI) requires all advisors to attain certification before they can engage in selling insurance. This certification is exclusively obtainable by passing the insurance advisor’s examination.

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