The Insurance Regulatory and Development Authority of India (IRDAI) developed a new distributor type known as a Point of Sale (PoS) person in 2005, with the goal of increasing business penetration.
PoSP is an abbreviation for Point of Sales Person. A PoSP is essentially an insurance salesperson with the authority to offer insurance plans to consumers directly. An individual who become a PoSP insurance agent can market a wide range of insurance products, including auto, health, and business insurance.
What Is A POSP Insurance Agent?
A Point of Sale Person (POSP) is a form of insurance salesperson that may offer insurance products from a variety of firms and categories, including life insurance, term insurance, and health insurance. He works for insurance, corporate representatives, or brokers. He often distributes OTC goods that have been pre-underwritten and authorized by IRDAI. Such items do not need any additional explanation or conversation with customers at the time of purchase.
What Are The Advantages Of Being A POSP?
- Make yourself your own boss - Work whenever it is convenient for you. You are in charge of your own destiny!
- No fixed timing- There are no set working hours, and you may choose whether to work full-time or part-time.
- Work from home - Use internet methods to sell insurance plans and work from home or anywhere!
- Only 15 hours of instruction - You may become an insurance expert with just 15 hours of training. We'll teach you all you need to know!
- Earn a lot of money - Your income is determined by the number of insurance you sell. Use the revenue calculator below to determine how much you may make for each insurance plan you sell.
- No Investment- There is no investment necessary, and there is no need to pay anything when you join. You only need a Smartphone/computer and an internet connection to get started!
What Are The Difficulties Faced As A POSP?
A POSP insurance agent may only sell insurance products; they cannot provide claim consulting or risk management services, for example. They were unable to explain or market sophisticated insurance packages. They rely on insurance brokers or firms to provide services to clients. Because they are less trained, they must make extra efforts to provide the greatest client experience possible.
Why Is POSP The Best Career?
- Unlike traditional insurance brokers, who can only offer their own company's insurance products, POSP insurance agent can sell plans from many insurance firms and across both life and non-life categories.
- POSP may offer insurance coverage immediately without the need for underwriting.
- POSPs are given with user-friendly and effective technological platforms to provide clients with immediate assistance.
- POSP agents may provide basic, straightforward insurance products that give comprehensive coverage and tax advantages.
- POSP insurance agents can earn greater confidence and build client connections since they are available locally.
Eligibility Criteria To Become A POSP Insurance Agent
A POSP must be at least 18 years old and have a class 10th pass as well as an Aadhaar card. According to IRDAI regulations, insurers or intermediaries must perform a 14-hour in-house training session followed an insurance agent exam. They will then issue a certificate and keep the records for at least 5 years.
Who Can Be A POSP?
- Students at college: If you are pursuing higher education but would like to spend some time earning additional money, this might be a viable alternative.
- Stay-at-home spouses and housewives: If you are a stay-at-home husband or wife with time, you may become a POSP insurance agent and make additional money for yourself and your family.
- Retirees: There is no upper age limit for becoming a POSP. As a result, this is an excellent way for retirees to supplement their income. They may work from the comfort of their own home without putting themselves under too much physical pressure.
- Businessmen/Businesswomen: If you already have a business but wish to do more on the side, you can apply to become a POSP insurance agent. This might be a fantastic method to make extra money to keep the business viable, especially in difficult times like today when the entire economy is struggling.
What Are The Items That POSP Can Sell?
POSP policies should be identified separately and preceded by the format 'POS – (name of product)'. Notably, they can only solicit and market the pre-underwritten product listed below.
- Comprehensive motor insurance policy for two-wheelers, private cars, and commercial vehicles.
- Homeowners insurance
- Policy on travel insurance
- Personal accident insurance
- Policy for third-party liability (for act) for two-wheelers, private cars, and commercial vehicles.
- Any additional policy that has been officially authorized by the authorities.
POSP Proposal Form Guidelines And Insurance Policy
- The Aadhaar card number or the PAN card number should be connected to every proposal form (paper or paperless), insurance policy, and other associated papers in order to tie the policy to the POSP who is selling it.
- It is the insurance company's responsibility to record the POSP insurance agent's Aadhaar number or PAN number in the proposal form and insurance policy. They will represent POSP and be accountable for. If there is any misbehavior, the insurance company must hold it liable to a penalty under Section 102 of the Act.
- If the transaction is made through an insurance intermediary, the insurance intermediary must enter the Aadhaar card number or the PAN card number in the proposal form and instruct the insurance firm to do the same in the insurance policy. As stated in the (2) point, the insurance intermediary is responsible for the behavior and POSP, and if there is any misconduct, the intermediary must hold it liable to a penalty under Section 102 of the Act.
- When renewing an insurance intermediary's registration certificate, the behavior of the POSP is also taken into account on the insurance intermediary's rolls.
People find the insurance industry to be an appealing career option since it provides them with another employment option through part-time jobs from home, which is especially important in these difficult economic times. These jobs allow people to earn money at their leisure. Furthermore, there is no retirement age restriction, so a person can earn as long as he or she is willing to work.