Page 45 - Mousumi: Unbelievable Transformation

There are two broad types of insurance viz. general insurance and life insurance.
General insurance refers to insurance of vehicles, house or building, household
goods, health insurances, insurance against loss by fire, theft, accident,
earthquake, hospitalization etc. These insurances are annual contracts that have
to be renewed every year, and if there was no claim in the past year, there might
be some discount in premium on renewal of insurance which is called “No
Claim Bonus”. There are four general insurance companies viz. New India
Assurance Company Limited (NIA), United India Insurance Company Limited
(UIL), Oriental Insurance Company Limited (OICL) and National Insurance
Company Limited (NICL) in the public sector and a number of insurance
companies in the private sector.
Life insurance financially protects the family or the nominee of the insured
against the loss of life of the insured. Unlike the general insurance, in case of life
insurance, there is a long term contract between an insurer and the insured and
premium has to be paid every year with the option to pay half-yearly, quarterly
and even on a monthly basis. Life Insurance Corporation is the major company
in the public sector, besides which there are a number of private companies
providing life insurance services. Insurance today is safe and secure as the sector
is regulated by IRDA (Insurance Regulatory Development Authority of India) by
taking care of clients’ interests by prescribing regulatory norms and revising them
from time to time.
Income to the agents or advisors is by way of commissions, the company
pays you for the policies sold, returns are very good, and there is no ceiling. If
you take care of the client by advising properly and servicing the policy, the
customer will not only remain loyal to you for his insurance needs; he will bring
others to you.
If this interests you, the first step is the choice of company you want to work
with. Once you have decided, you can contact its local office, which may
interview you and provide the necessary training. Then you have to appear and
pass an online test for RDAI IC 38 certification, conducted by agencies
authorized by IRDA. There are separate tests for Life, General and Health
Insurance. Remember that you can do insurance business as an agent or advisor
only for the company you chose, has trained you and sponsored to appear in the
test.
Mutual Fund Sector
Mutual Fund distributor or dealer works is another sunshine area in the financial
services sector today. It is well regulated by the Securities and Exchange Board
of India (SEBI), and there is a hundred percent transparency in the functioning
of Mutual Funds.
If you are interested in Mutual Funds distribution as an advisor, you can
directly contact AMFI (Association of Mutual Funds in India) and fill-up the
form and deposit the prescribed fee. You will receive reading material on mutual
funds to prepare for the test. It is an online examination with on the spot result.

♦♦Career Mantra♦♦ Page 44