IRDA HAS REDUCED THE PASS MARK % (FOR NEW AGENTS) FROM 50 TO 35 WITH EFFECT FROM 30/05/2013
In a bid to increase the number of candidates qualifying as an insurance agents, the Insurance Regulatory and Development Authority (IRDA) has reduced the pass percentage to 35% with immediate effect. Earlier, a candidate had to score a minimum of 50 % marks for qualifying in the pre-recruitment agent’s examination.
The IRDA has been receiving representations from various stakeholders expressing the practical difficulties involved in the recruitment of insurance agents.
Among other reasons, the mandated higher benchmark of 50% marks is identified as major reason contributing to reduction in agency force in the country, said a circular from IRDA.
Therefore IRDA said that considering the fact that the agents are under direct supervision of marketing officials of insurers who train them on the job continuously, it has decided to reduce the pass percentage benchmark.
In 2011, IRDA conducted a thorough review of the existing life insurance agent licensing qualification and decided to use the expertise of Chartered Insurance Institute (CII), London, in enhancing the existing IC33 ‘License to practice’ – the qualification for pre-recruitment examination for life insurance agents conducted by the Insurance Institute of India (III).
The syllabus introduced was challenging in its scope and depth. It did not encourage agents to merely memorise facts and figures, but also tested their understanding of learning, and ability to apply it in a wide range of practical real-life situations.
As a result, very few candidates were able to clear agent’s examination leading to significant drop in the number of insurance agents in the industry.
According to IRDA annual report FY’12, the year 2011-12 witnessed 10.63% decrease in the number of individual agents. The number has gone down to 26.39 lakh as on 31 March 2011, to 23.59 lakh as on 31 March 2012. While total number of agents appointed by life insurers was 7.14 lakh, the number of agents terminated was as high as 9.95 lakh.
The scenario was worse for private life insurers compared to Life Insurance Corporation of India (LIC). While private insurers appointed 3.68 lakh agents, 5.89 lakh agents were terminated. On the other hand, in case of LIC, 4.04 lakh agents were terminated, while it appointed 3.45 lakh agents.
Insurers say that agent examination had become more caselet oriented with application of knowledge to ensure that only those who can apply their knowledge are able to clear the exams. Bringing down the minimum pass percentage will ensure that more number of students qualify as agents.
