Now, insurance agents can easily shift from one insurance company to another.
To do so, all they need to do is surrender their agency license with the existing insurer. The insurance company will issue a cessation certificate within 15 days from the date of surrender of agency license. Subsequently, they can apply for the license with an insurance company of their choice by submitting cessation certificate along with other supporting documents. However, the new license will be issued after 90 days of issuance of cessation certificate with the old insurer.
As of now, agents need to apply fresh if they wish to migrate to another insurance company. That means, the agents are required to first surrender their existing agency license through resignation. The insurance company cancels the license after a few days. After this, agents who wish to shift to another insurer are required to complete the mandatory IRDAI training and pass the examination. Source: CareMutual
Life Insurance Agency Transfer
As per IRDA one life insurance agent cannot work with more than one life insurance company. Though the agent is free to transfer his agency from one company to another but he / she cannot be working for two insurers at the same time.
The process to transfer Life Insurance agency from any other life insurer to LIC of India is very simple you need to resign from your current life insurance company and have the Form 1C issued from them. Once you have the Form 1C, you can apply with a insurance agency transfer letter at the nearest LIC Office along with a written application and your documents.
Procedure to transfer a life insurance agency
First you need to get a NOC (no objection Certificate) letter from your present insurance company. You need to apply with your nearest LIC of India office. If you know some development officer or a CLIA (chief life insurance advisor) you can approach them directly. Even if you do not know anyone at LIC you can approach the Branch Manager and he will allocate you to a team under guidance of someone senior.
Once the branch has received you application they will check the documents and will call you for a brief introduction with the Branch Manager.
After the interview with the Branch Manager you would be allocated a LIC agency within 10 days.
Documents required to transfer the agency
- Application for transfer of agency
- 2 (two) passport size photograph
- One ID proof
- One address proof
- Form 1C issued by current life insurer (Form 1C click here to download)
New IRDA Rules for transfer of Agency
New IRDA Rules for transfer of Agency / Corporate Agency License from one insurer to another
As per laid down procedures of IRDA, for transfer of Agency / Corporate Agency License from one insurer to another. IRDA has mandated Agents / Corporate Agents to submit a “No Objection Certificate” to transferee insurer which is obtained from transferor insurer.
Instances have been observed that the transferor insurers are making in ordinate delay in issuing ” No Objection Certificate” to Agents / Corporate Agents even after complying with the provisions of the transfer. Further , it is also informed by the insurers that the Agents / Corporate Agents are seeking transfer without contributing much business to them. In view of this, it has been decided, by IRDA,
- Not to allow any Agents / Corporate Agents to seek transfer of License within One Year from the date of gran of their License.
- Further, Agent / Corporate Agent shall seek transfer without achieving the Minimum Business Norms mandated by the respective Insurers.
- The Insurers shall grant “No Objection Certificate within One week of receipt of the request subject to compliance with provisions of Circular referred above.
- In case No Objection certificate cannot be granted within stipulated time frame, the Insurer shall record the reasons for non issuance of NOC in portal and shall ensure compliance by the agent of the provisions of the above Circular within one month of request except in case of fraud or serious complaint.
- In case no pertinent reason is recorded within one week and one month time period is elapsed from the date of request, those requests will be deemed to have been granted NOC and transfer will be effected in portal.
Reference documentation: IRDA/CAGTS/CIR/142/07/2013