Job profile of an agent
- every agent shall solicit and procure New Life Insurance business, which shall not be less than the minimum prescribed in the appointment letter and shall endeavour to conserve the business already secured
- In procuring New Life Insurance business and agent shall:
- Take into consideration the needs of the proposals for the life insurance and their capacity to pay premiums
- Make all reasonable inquiry in regard to the life to be insured before recommending proposals for acceptance and bring to the notice of the corporation any circumstances which may adversely affect the risk to be underwritten
- Take all reasonable steps to ensure that the age of the life assured is admitted at the commencement of the policy
- Not interfere with any proposal introduced by any other agent
- Every agent shall, with a view to conserving the business already secured, maintain contact with all persons who have become policyholders of the corporation through him and shall:
- Advise every policyholder to affect nomination or assignment in respect of his policy and offer necessary assistance in this behalf
- Endeavour to ensure that every installment of premium is remited by the policyholder to the corporation within the period of grace
- Endeavour to prevent the lapsing of a policy or its conversion into a paid up policy
- Render all reasonable assistance to the claimants in filling claim forms and generally in complying with the requirements laid down in relation to settlement of claims
Hints to agents
Agents are strictly prohibited
- From advancing premiums on behalf of proposes or policyholders, from becoming assignees under policies on the lives of persons other than Their near relative such as wife, minor children, major children if they are members of the joint family or allowing such near relatives to become assignees under policies on the lives of persons other than Their near relatives.
- From printing, publishing or circulating any leaflets handbills or advertisements, letterheads, visiting cards etc. relating in any way to the corporation even at their own cost unless Express permission of the corporation has first been obtained
- From interfering in any way with proposers from whom other agents have already secured proposals which may be pending for completion.
If an agent has already introduced a proposal and another agent interferes with the case and diverts the business to his agency by securing another proposal, it is the first agent who will be allowed the credit of the business even if the second proposal secured by the other agent results into a policy while the first proposal remains incomplete. The Other agent can only get credit of the proposal introduced by him provided it results into a policy after the first proposal has become stale and is cancelled on the expiry of a period of 1 year from the date of completion of the proposal if under non medical scheme or from the date of medical examination there under in other cases or in the event of date of expiry of the period of postponement. The first agent should however see that every effort is made to steer the first proposal to completion without delay so as to leave no room for another agent to interfere with the proposal
- From allowing or offering to allow either directly or indirectly Commission or rebate in any form to a proposal or life assured. Any agent violating the provisions of section 41 of the insurance act 1938 is punishable with fine.
- From accepting a risk or binding the corporation in anyway
- From collecting any money from proponents or policyholders except when specifically authorised by the corporation. They may, however, collect deposits toward the first premium and remit the same to the corporation immediately but in doing so they should note that they act as agents of the proponents and not as the agents of Corporation
- From convassing business without possessing a current valid licence
Conservation of business
- Agents must as a part of the service to policy holders of their introduction keep in continuous touch with them with a view to ensuring that premiums on their policies are paid as and when they fall due. More often than not, the lapsing of policy with the consequent loss it involves to the policyholder is due to the policyholder not paying the premium in time inspite of the notice issued to him by the corporation and once a premium remains unpaid, it may happen that subsequent premium has also fallen due before the policyholder awakens to the fact that premiums under the his policy are in areas in such a situation, many policyholders find it difficult to pay all the areas of the premiums in time so that lapse of the policy becomes inevitable. Agent should therefore ensure that all premiums on policies completed by them are paid as and when they fall due
After sale services
The first services which contributes to a policyholders appreciation of his insurance are those which are performed at the time his proposal is scared to completion viz.
- Selling the right policy, i.e., the policy that correctly answers the individuals need and circumstances
- Selling the policy right, i.e., explaining its benefits in such a way that the policyholder would consider it necessary to maintain the policy
- Inculcating the habit of saving that is ensuring that the policyholder saves regularly from his income so that he has the amount necessary to pay the premium readily available in cash when the premium Falls due
The agent's responsibilities to the policyholder are not over with the closing of the sale. It is essential that the sale is followed up with Good after Sales Service and regular contact with the policyholder.
Life Insurance salesman, unlike other salesman, receive renewal Commission on their past business. Renewal commission is not a gift for service already rendered. Old policies need to be serviced from year to year, and renewal commission is paid for continued service the life insurance salesman is expected to render to the policyholder
The most important service that the agent is expected to render immediately after the issue of a policy is in respect of the appointment of a nominee if nomination has not been effected.
The agent can render after Sales Service in other matters as well, namely alterations in the policy contract, arranging for policy loans, conservation of policies, revival of lapsed policy is additional insurance and finally the settlement of claims.