A composite insurance agent holds the licence to sell policies of a life insurer and a general insurer. This article highlights the necessary steps one needs to undertake for becoming a composite insurance agent.

insurance agent license

India’s insurance sector has witnessed exceptional growth in recent years. According to a report by India Brand Equity Foundation (IBEF), the sector is expected to reach US$280 billion by 2020. Now, if you are thinking about kickstarting a career in this industry, becoming an insurance agent can be a great way to begin. Insurance agents are tasked with advising clients on finding policies that match their needs. They form the connecting link between insurance companies and their customers.

Generally, there are two main types of insurance agents: captive insurance agents and composite insurance agents. A captive insurance agent is one who is employed by a particular insurance company and only sells policies on behalf of that provider. A composite insurance agent, on the other hand, works independently. He or she is not under the payroll of any one insurance company, rather the agent sells policies of multiple companies. In this article, we will focus on the latter – who is a composite insurance agent and how to get a license to act as one.

Definition of Composite Insurance Agent

The IRDAI defines a composite insurance agent as “an individual who is appointed as an insurance agent by two or more insurers subject to the condition that he/she shall not act as insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the mono-line insurers.”

Who can become a Composite Insurance Agent?

A person who seeks a composite insurance agent license must possess the minimum qualification of a pass in 12th Standard or equivalent examination held by any recognised Board/Institution, if the applicant lives in a place with a population of 5,000 or more. The individual should be a pass in 10th Standard or equivalent examination held by any recognised Board/ Institution, in case he or she lives in any other place.

The applicant is required to undergo practical training from an approved institution and later pass a pre-recruitment examination to be granted the composite insurance agent license from IRDAI. For further information on this matter, please visit the website of the insurance regulator.

Becoming a Composite Insurance Agent

A person seeking to become a composite insurance agent has to make separate application to the Designated Official of the respective life, non-life, health or mono line insurer, as the case may be, in the ‘Composite Agency Application Form I-B. This application has to be submitted by an existing agent for appointment to act as a composite insurance agent with another insurance provider (Life Or General Or Health Or Mono-Line Insurance).

The contents of Form I-B are as follows

“NAME OF INSURANCE AGENT _____________________________

Name of the Insurer Agency code Number Date of Appointment
as agent Date of cessation of Agency Reason for cessation of agency

Note If Agency is currently in-force with an insurer mention “INFORCE” in the column ‘Date of cessation of Agency


Life Insurer
General Insurer
Health Insurer
Other Mono-Line Insurer
Mention name of the Insurer in the Box above


(i) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of other mono-line insurers.

(ii) Any person who acts as an insurance agent in contravention of the provisions of this Act, shall be liable to a penalty which may extend to ten thousand rupees.

(iii) Attach Separate Application Form for each of the Insurance Company with whom you seek to obtain Appointment and submit all the Application Forms to your current insurer only.”

Source: IRDAI

Career as a Composite Insurance Agent in India

A composite insurance agent holds a license to sell policies for a life insurer and a general insurer. This gives them more flexibility as compared to captive agents in terms of product offerings. The earnings of composite insurance agents are mostly in the form of commissions paid by insurance companies for the sales made. There is thus no limit to how much money such agents can make selling insurance covers. The higher the number of policies sold and the larger the premiums size, greater will be the commission paid to the agent.

With the insurance sector booming, there is tremendous potential for growth in this line of work. To succeed, the agent must be well-versed with the products that he or she is offering. Certain insurance terms can be complicated for the layman to understand. It is therefore, the agent’s responsibility to make sure that the prospect or customer is thorough with the nitty gritty of insurance. Lastly, the insurance agent must know how to communicate effectively as a whole lot of their daily work requires them to talk over call, face-to-face, exchange emails, etc. Having the necessary skills can help ensure the individual finds success working as an insurance agent.