IKON
Every time Venkateswara Rao Vakalapudi thought of an insurance agent, the image that came to his mind was of a pesky person thrusting insurance policies under people’s noses. This was one profession he was certain that he never wanted to pursue. Yet, today he is Life Insurance Corporation of India’s (LIC) record-breaking star insurance agent.
Last year, he earned LIC Rs 51 crore worth of fresh business, an industry record. To put this in perspective, 60 per cent of insurance agents in India do business worth Rs 2 lakh to Rs 3 lakh a year.
Vakalapudi, 42, who grew up in a village in West Godavari in Andhra Pradesh, today drives a Range Rover Sport, has a sea-facing bungalow at Vizag, has high net-worth individuals (HNI), non-resident Indians (NRIs) and corporate houses as his clients and travels around the world for business and to give motivational talks.
In the first year, he sold 12 insurance policies, six to his friends and the rest to his customers in the poultry business.
Vakalapudi was selected as member of Million Dollar Round Table (MDRT), a premier association of financial professionals in the world. The five-day MDRT meet he attended in Las Vegas changed his perception towards the profession. “I realised an insurance agent is like a doctor,” he says, “helping people manage their lives and needs.”
Vakalapudi now has two offices, at Hyderabad and Vizag, and a 15-member team. He has launched a financial consultancy called Anand Jeevan.
What is the Job all about?
There are several types of Insurance;the three main ones being – Life, Medical / Hospitalization and Motor Vehicle / Property Insurance. Insurance essentially covers Risk; Risk of death, Health or loss of Property.
In Life insurance, the person protects his family, should anything go wrong with him, i.e. the Policy Holder’s untimely death. In the case of Health / Hospitalization – the Insurance Company would pay most of the Hospital Bills should there be need for surgery, etc. In case of Motor Vehicles or Property – the Insurance Company pays most of the bills in the event of an accident and in case of Property loss due to fire, etc.
Can you go for it?
Types of Job opportunities
Essentially there are four job opportunity areas in Insurance:
- Advisors or Agents
- Administrators
- Actuaries ( see separate chapter on Actuary) and
- Surveyors
Advisors or Agents
Advisors or Agents are not on the direct Pay-Roll of the Company; but are employed on Commission basis, after they have passed the Agent’s qualifying test. These jobs are for those who have convincing and staying powers. There is an element of working odd hours, as Clients are usually available in the evenings or on their off days.There are very many choices and Insurance Companies available these days. So the Agent must also be familiar with the product / s of the Competitor companies, and so better equipped to handle their queries more effectively.
Administrators
Administrators are the Team Leaders of the Agents / Advisors. The Administrator’s job is essentially involved in motivating his team of Agents. They train, motivate and guide the new Agents in their responsibilities. They ensure that the paper work has been correctly verified and submitted and the financial aspects are in order.
Surveyors
They look at Claims in case of Accidents / Property Damage and confirm Losses involved.
Is there a future in this field?
Basically, you must have a helpful and convincing nature and a lot of ‘Patience and ‘People skills’. You must be able to marshal your facts accurately. You must be prepared to work late hours and on holidays – as potential Customers do not like to discuss such issues during normal working hours. Some people are very indecisive, and for these, you must go on talking to them till they are convinced. Those who do well can grow in the cadre.
Where to Begin in Goa?
To become an Agent: After 10 + 2 Program, persons must train – 100 hours mandatory training and appear for the IRDA (Insurance Regulatory and Development Authority) Test. Once they pass the Test the students are issued a Licence to operate as Agents.
Candidates can purchase the relevant Books and enroll in the Postal training program, or the regular program conducted by the Insurance Institute of India. www.insuranceinstituteofindia.com. This apart, several institutions – including insurance companies – have been accredited by IRDA to provide the required 100 hours of mandatory training.
Administrator
In this area, all the administration, finance and other development work takes place. So the first question you might be tempted to ask, ‘Now that I started working as an Agent, can I switch to a proper job in Insurance Company? For LIC / GIC Assistant Administrative Officer Course (LIC / GIC-AAO)
LIC Assistant Course (LIC-ASST), please see www.nsbindia.net / courses html
Can an Agent join the Company on full time basis?
Yes, subject to vacancies, and performance as an Agent and qualifications. While 10 + 2 is adequate for an Agent, for an opportunity as on Officer / Administrator you have to be a Graduate.
LIC, for instance, has a position of Assistant Administrative Officer (Development). His task, when selected, is to promote Marketing and Sale of Policies by meeting people, etc. This is a promotional position; after requisite training, etc. and a few years in the job, the person is promoted as Administrative Officer (Development).
In Multi-National Companies (e.g. ICICI – Prudential, Tata-Aig, Alliance-Bajaj, HDFC-Standard Life, SBI-LIFE, etc.) the position of Sales and Marketing Manager would be very attractive too. But again, the person vying for this position must have a strong track record and be able to achieve targets set for each year. But here, it would be advisable to qualify in Insurance through one of the following Institutes: Welingkar, ICFAI, Narsee Monjee, Symbiosis, Amity, etc.
Actuaries (see separate chapter on Actuary)
Surveyors
These jobs can be divided into two segments. The first being, when a New Industry wants its factory / office / equipment / machinery / vehicle / staff, etc. to be insured – in case of any eventuality that may befall the Company. It is the Surveyors’ responsibility to estimate the causal effects and recommend to the Insurers, the extent of liability they will have to cover.
The other segment is in the actual event taking place, i.e. a motor accident or machinery not working to its stated capacity, etc.
In both cases, professional Engineers are assigned to be Surveyors. They could either belong to professional Surveyor companies or can work independently as Consultants.
Qualifications:
A Surveyor needs to hold a Licence. To obtain a Licence he needs the following:
- Fellowship or Associate-ship through exam by IISA (Institute of Insurance Surveyors and Adjusters).
- A Degree or Diploma in Architecture of a recognized University, or
- Fellowship or Associate-ship of C.A. (Institute of Chartered Accountants or ICWA), or
- A Degree or Diploma of a recognized Institute of Engineering or a Degree or Diploma in Naval Architecture.
Monies
Agent: Initially the Company would pay the Agent a stipend for a particular period, plus the agreed Commission. Once the Agent has got the hang of things, then he is on his own and would only get Commissions, based on policies sold. If an Agent has good contacts (networking) and convincing abilities, he / she could sell initially three to six policies per month, and these would gradually increase once his network widens. Depending on what the Premiums are, for the first year, he would get a Commission on the Premiums paid. Commissions vary, but could be around 25-35% of the Premium paid. So if the Premiums collected are 2 lakhs for year one, then at the rate of 25% he would get Rs. 50,000 / – p.a. In subsequent years, you also get a Commission for the Policy you have covered, but in smaller percentages.
Administrator: The Salary package at this level would be very attractive and could easily be in the region of Rs. 25,000 – 35,000/ – p.m., plus Commissions.
Surveyor: Depending on the nature of each assignment the Fees could be pretty hefty, and therefore, Surveyors could easily make above Rs. 30,000/ – p.m.
Please do not be satisfied with just acquiring a Degree/Diploma – try and enhance your CV by doing online learning programs (with a certificate) of programs relevant to your choice of career. Your chances of employment will be much better than just a plain degree/diploma.
Please check this website under other details for places you can learn online. Also try and develop your confidence by doing a public speaking training program with people like Toast Masters International.
For government jobs: please check : http://www.employment-newspaper.com/