The Hindu Business Line : IRDA mulls halving minimum training period for agents

Mumbai June 17 The Insurance Regulatory and Development Authority is considering halving the minimum training period for insurance agents from 100 hours to 50 hours.

"We are considering a possible reduction of the mandatory 100 training hours to 50 hours. Insurers say that they are finding the 100-hour stipulation to be excessive," Mr C.S. Rao, Chairman, IRDA, told Business Line.

Insurance agents are currently required to complete 100 hours of training spread over two to three weeks from an IRDA approved institution, and pass the qualifying test. In the case of online training, agents have to complete their training within a minimum period of 18 days and a maximum of 30 days. However, those who have an MBA or a CA qualification need just 50 hours of training.

Mr Rao said the Life Insurance Council had submitted a list of recommendations on behalf of the life insurers.

Insurers have long maintained that the 100 hours of mandatory training translated to micro-management by the regulator.

Focus on agent's needs

"Training has to be focused on the agent's needs. An agent, who is mainly selling unit-linked insurance plans, needs to trained on the capital and debt markets, while an agent selling traditional products may not require as much training," said Mr Sam Ghosh, CEO, Bajaj Allianz Life Insurance.

"Similarly, an agent selling in the rural areas may require minimal training as the products are simple and less sophisticated," he added.

Bajaj Allianz Life currently has a large agency force of 2.3 lakh and plans to expand it to 3.5- 4 lakh by the end of the year.

Mr Deepak Satwalekar, MD and CEO, HDFC Standard Life, said that while there is no grouse against licensing agents, the 100 hours of training amounts to micro-management. He illustrates with an example: "The on-line training facility works well in the smaller towns and that is where it hurts the most. You have to complete 100 hours in 30 days. So, if I have done 98 hours on the 29th day, but on the 30th day there is a power cut and I cannot access the Internet, then on the 31st day I have to start at zero."

"Why should one worry if it is done in 15 days or 30 days? What is really needed is monitoring the integrity of the testing process rather than input controls," he adds.

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