The insurance industry in India has undergone a massive transformation over the last decade, and one of the most impactful innovations has been the introduction of POS Insurance, also known as Point of Sale (POS) insurance. Designed to simplify insurance distribution and make insurance more accessible, POS insurance has opened doors for thousands of individuals to become certified advisors and help customers purchase easy, transparent, and affordable insurance products.
If you’re new to the concept or
planning to become a POS insurance advisor, this detailed guide will help you
understand what is POS insurance and
how does it work, along with its benefits, eligibility, process, and
more.
What Is POS Insurance?
POS Insurance refers to simple,
easy-to-understand insurance products that can be sold by POSP (Point of Sales Person) insurance agents.
These advisors are certified individuals authorized by insurance companies to
sell pre-approved and low-risk insurance policies.
The Insurance Regulatory and
Development Authority of India (IRDAI) launched the POSP system to:
- Expand insurance penetration
- Increase employment opportunities
- Make insurance buying simpler for customers
- Ensure unbiased guidance for various insurance products
Simply put, POS Insurance allows trained individuals to sell select insurance
policies through a quick, transparent, and digitally enabled process.
Who Is a POSP Insurance
Agent?
A POSP (Point of Sales Person)
insurance agent is a certified advisor who can sell specific insurance policies
approved by IRDAI. They are trained and authorized to guide customers on:
- Motor Insurance
- Health Insurance
- Travel Insurance
- Term Insurance
- Personal Accident Insurance
- Home Insurance
- Small business and liability products
Unlike traditional agents who may
require extensive training and licensing, a POSP agent needs only:
- Basic qualifications (10th pass)
- Completion of a short training module
- Passing a simple online assessment
This makes POS insurance one of the easiest entry points into the
insurance industry.
How Does POS Insurance
Work?
POS Insurance is designed with
simplicity and speed in mind. Here’s how the process works:
1. Customer Connect
The POSP advisor connects with
customers—either online or offline—to understand their insurance needs. Since
POS products are simplified, even first-time customers find them easy to
understand.
2. Product Presentation
The POSP shares details about
various products such as coverage, premium, benefits, claim processes, and
exclusions. POSP advisors must ensure transparency and avoid misrepresentation.
3. KYC and Documentation
Most Insurance companies today have 100% digital KYC, where customers can
upload:
- Aadhaar
- PAN
- Address proof
- Passport-size photo
This makes onboarding quick and
seamless.
4. Policy Issuance
After the customer selects a plan
and pays the premium online, the insurance policy is instantly generated. A
soft copy is emailed and made available for download.
5. Claims Assistance
While insurance companies handle the
claim process, POS advisors guide customers in:
- Filing claims
- Submitting documents
- Tracking claim status
What Types of Insurance Can
Be Sold Under POS?
IRDAI allows POS advisors to sell
simple and low-risk insurance products. These include:
1. Motor Insurance (Car
& Two-Wheeler)
- Third-party insurance
- Comprehensive insurance
- Add-ons like Roadside Assistance, Zero Depreciation,
etc.
2. Health Insurance
- Individual health plans
- Family floater plans
- Top-up and super top-up cover
- Covid-related plans
- Personal accident cover
3. Life Insurance (Simple
Products)
- Term life insurance
- Guaranteed return plans
- POS-friendly life products with easy terms
4. Travel Insurance
- Domestic travel cover
- International travel cover
- Student travel plans
5. Property & Business
Insurance
- Home insurance
- Small shopkeeper insurance
- Liability cover
- Fire insurance for SMEs
These products are pre-approved and
simplified for customer clarity.
Benefits of POS Insurance
for Customers
The introduction of POS insurance
has been a major win for consumers. Here’s why:
1. Easy-to-Understand
Products
POS insurance products have simple
terms and minimal documentation, making them ideal for first-time buyers.
2. Quick Policy Issuance
Most policies are issued instantly
after online payments, reducing processing delays.
3. Transparent Process
All terms, conditions, and
exclusions are clearly explained by POSP agents, offering complete
transparency.
4. Affordable Premiums
POS products are designed to be
budget-friendly, meeting the insurance needs of low and middle-income groups.
5. Hassle-Free Claims
Guidance
POS advisors help customers navigate
claim procedures smoothly.
Benefits of Becoming a POSP
Insurance Advisor
For those exploring career
opportunities, becoming a POSP advisor offers several advantages:
1. Low Entry Barrier
No high-level education or
experience is required. Even beginners can start after 15–20 hours of training.
2. Work from Anywhere
All processes—training,
certification, and policy sales—can be done online.
3. Unlimited Earning
Potential
POS advisors earn commissions on
every policy sold, with no upper earning limit.
4. Be Your Own Boss
POS advisors enjoy complete
flexibility:
- Work full-time or part-time
- Build your own client base
- Choose which insurance categories to sell
5. Growing Industry
With rising awareness, the insurance
market continues to expand, increasing demand for POS advisors.
Eligibility to Become a
POSP Insurance Agent
To become a POS advisor, you must
meet basic eligibility requirements:
- Age:
Minimum 18 years
- Education:
Class 10th pass
- Training:
15–20 hours of POS training
- Documents:
Aadhaar, PAN, bank details, photos
Once you complete the training and
assessment, you receive a certification from the insurance company.
How to Become a POSP
Advisor? (Step-by-Step Process)
Step 1: Choose an IRDAI-approved insurance partner
Step 2: Submit your documents online
Step 3: Complete POS training
Step 4: Take the online exam
Step 5: Receive your POSP code
Step 6: Start selling insurance digitally
Is POS Insurance Safe?
Yes. POS insurance is fully
regulated by IRDAI to ensure:
- Transparent sales
- Clear terms
- Verified products
- Consumer protection
All policies are issued directly by
the insurance company, ensuring full safety and compliance.
Conclusion
POS insurance is one of the biggest
advancements in India’s insurance distribution system. It not only simplifies
insurance buying for customers but also empowers thousands of individuals to
build careers as POSP advisors.
Whether you're looking to buy a
simple insurance product or exploring a flexible earning opportunity, POS
insurance is a trusted and highly efficient solution.
Frequently Asked
Questions
Q.1. What is POS
Insurance?
POS
(Point of Sale) Insurance is a simplified insurance distribution model
introduced by IRDAI that allows individuals to sell select insurance products
with minimal documentation and an easy certification exam. It makes buying
insurance faster, more transparent, and more convenient for customers.
Q.2. Who can become a POSP insurance
agent?
Anyone
above 18 years of age, who has passed Class 10 and completed the mandatory
15-hour POSP training, can become a POS agent in India. No prior experience in
insurance is required.
Q.3. Is the POSP
certification difficult?
No,
the certification is very easy. Candidates only need to complete the 15-hour
online training and clear a basic test. Since products are simple, the training
is focused on practical selling skills.
Q.4. How much can a POS agent earn?
Earnings
depend on the number of policies sold. POS agents earn attractive commissions
on each insurance policy. Many active POSPs earn between ₹25,000 to ₹1,00,000+
per month by working full-time or part-time.
Q.5. Is POS insurance safe and
reliable?
Yes,
POS Insurance is fully regulated by IRDAI. All POS insurance products are
pre-approved, easy to understand, and designed to protect customers with full
transparency.
