Keeping in mind the coronavirus pandemic, IRDAI has asked insurance companies to postpone or reschedule examination and training programs of insurance agents till March 31, 2020.
In a circular, IRDAI said, “Keeping in view the advisory by Ministry of Health and Family Welfare on social distancing measure in view of spread of Covid-19 disease, we may advise the individual agents of insurance companies and specified persons of corporate agents to postpone or reschedule their IC-38 exams for after 31st March 2020.”
Currently, candidates appearing for IC-38 exams are required to complete 50 hours of training from an IRDAI approved training institution to become life and general Insurance agent. The agency license is valid for three years.
There will be no substantial impact on the existing workforce i.e. renewal of license. While most insurers renew agency license based on business performance of their agents, a few insurers insist their agents to undergo mandatory training to keep their license active.
Insurance Advisor, Swami Gowda told Cafemutual that agents are no longer required to appear for exams to renew their license. Most private insurance companies renew license even without training, he said.
Vighnesh Shahane CEO and MD, IDBI Federal Life Insurance feels that the move would help insurance companies and agents. He said, “At a time when entire country has been locked down, such community exercises comprising of higher number of people gathering at a place have to be avoided until things stabilize.”
Mayank Bathwal, CEO, Aditya Birla Health Insurance told Cafemutual that since IC-38 exams (for new license) involve trainings, it is better to defer these training programs given the current situation.