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POS Full Form In Insurance

POS Full Form in Insurance

IRDAI, the Insurance Regulatory and Development Authority of India, is responsible for all insurance-related activities in the country. They have formulated a way to ensure that every citizen of India has a legal insurance under their name through the birth of POSP Program, which means Point of Sales Person.

A POSP agent works on the grassroot level and offers its customers various insurance options. While, a traditional agent can only sell policies of their own company. A POSP agent can sell insurance plans across companies and categories as well, like term, life, health plans, etc.

In the insurance world, POSP is a Point of Sales Person and POS full form in insurance is Point of Sales. In 2015, IRDAI approved a method, point of sales person to enhance insurance growth and awareness in the country. It is mandatory for an individual to have a valid licence from IRDAI in order to become an insurance agent and work in this field.

Role Of A POSP Agent

The role of insurance agent is to sell policies that need very little legal liability. Therefore, involvement needed for such insurances can be kept to a minimum and even the training and exams to become an insurance agent is not very difficult to crack.

In fact, the IRDAI, has approved the insurance industry to use POSP agents to venture into life insurance products. These products are easy to gasp knowledge. Also, they state upfront benefits that are confirmed and identified earlier.

Currently, to increase recruitments of POSP agents, IRDAI, has allowed the certification programme to be held by insurers or intermediaries.

POSP agents can be engaged either directly by insurers or by intermediaries, like corporate agents and brokers. The criteria are they must be of legal age, that is 18 years to appear for the insurance agent exam held by IRDAI and training.

IRDAI had appointed the NIELIT - National Institute of Electronics and Information Technology to manage the POSP examination. But later, IRDAI cancelled this criterion and allowed in-house training. This was done because it was hampering the effective recruitment of POSP agents.

Hence, training came into being by insurer or intermediary for POSP agents. After the exam and training, the insurer or the intermediary are liable to provide a licence to the said POSP agent. IDRAI has a set study material model for these exams and training conducted by the insurer or intermediary. The material has been drafted by the Life Insurance Council and IDRAI, and has to be used by all.

Advantages Of Being A POSP Agent

A POSP agent has the following advantages:

  • Has the authority to issue insurance policies without any underwriting
  • Can sell plans that provide complete protection and tax benefits
  • Can offer many more options to choose from
  • Equipped with digital technology, which makes their lives form-free

Difference Between Traditional Insurance Agent And Point Of Sale Person

Let us see how POSP is different from traditional insurance agent.

Training And Assessment

  • Traditional Agent - A traditional insurance agent needs to pass their HSC examination to be authorized to work as an agent. They also need to clear the IRDAI exam and complete over 50 hours of training to get their license, legally approved for 3 years.
  • POSP Agent - A POSP agent needs to pass their SSC examination. They also need to clear the IRDAI exam and a 14 hour training session to achieve a license, legally approved for 5 years.

What Can They Sell?

  • A traditional insurance agent can look into the sale of insurance policies from a single insurer only, with whom they are affiliated with.
  • A POSP agent can however look into the sale of policies of various insurance companies. They can sell vehicle, home, travel and personal accident policies, etc.

From Where Do They Operate?

  • Agents work in the big cities and towns, where insurance companies have their base.
  • A POSP agent deals with customers who are new to buying insurance. They help them with basic policies to begin with. They can however move across different cities, towns, villages, etc.

Conclusion

To become a POSP insurance agent, you can simply apply on the official website of the company you desire to work with. Follow their instructions, submit your legal documents and you will be good to go. It is not so tough to become a POSP Insurance Agent now. Plus, it teaches you a lot about the grassroot level of the country and offers you a chance to be independent in your life - financially and mentally.

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