The issue of the licence required under Section 42 of the Insurance Act 1938, is regulated by the Insurance Regulatory and Development Authority (IRDA), constituted by the IRDA Act of 1999,

The IRDA (Licensing of Insurance Agents) Regulations, 2000 gives full details in this regard



In terms of these Regulations, no person will be given a licence if he is
(a) a minor,
(b) found to be of unsound mind
(c) found guilty of criminal misappropriation or criminal breach of trust or cheating or forgery or an abetment of or attempt to commit any such offence
(d) found guilty of or knowingly participating in or conniving at any fraud, dishonesty or misrepresentation against an insurer or an insured.
(e) not possessing the requisite qualifications and specified training
(f) not passed such examinations as are specified by the Regulations.
(g) found violating the code of conduct as may be specified by the Regulations made by the Authority.

Disqualification of Agents

In the case of a firm or company desirous of becoming an insurance agent, all the partners or directors must be free of the specified disqualifications.

Fee for grant of a licence

The fee for grant of a licence is Rs.250.

A licence is granted for 3 years.

It may renewed after 3 years.

It can be cancelled, if the agent acquires any of the disqualifications.

A person canvassing life insurance business or receiving commission therefore, without holding a valid licence, is liable to punishment.