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Insurance Sector is governed and regulated by its registration authority, Insurance Regulatory and Development Authority of India, or IRDAI. All the activities related to Insurance are supervised closely. The PoS (Point of Sales) initiative was introduced by IRDAI, to increase insurance penetration in India. In other words, a PoS agent can sell insurance after receiving a Certificate by IRDAI.
The penetration of insurance in India has been low because there has been a lack of trained professionals who can be employed as agents or distributors. Even for simple products such as motor insurance or travel insurance. Or a more complex insurance solution like ULIP, the mandate is that only a registered distributor can sell policies from a particular insurance provider.
To reach out to more people across the country, the industry needs more Insurance Agents. To achieve that objective, what was needed was a simple certification process. Therefore, to get more Insurance Agents and Distributors on board quickly, the IRDAI allowed for a new type of entry, called the PoS person. These individuals may have a lower qualification and training threshold as compared to other insurance distributors such as agents, brokers and corporate agents. That is why IRDAI has allowed these PoS Insurance agents to sell only basic products, which don’t require a lot of underwriting.
Understanding PoS Agent
Understanding pos agent: WealthBucket
PoS persons can be engaged directly by insurance companies or by other intermediaries such as corporate agents and insurance brokers.
Hence, if you want to get certified as a PoS agent, you need to get yourself registered with an insurance company or broker. Take the requisite training, study, and pass the IRDAI test with a certain minimum percentage.
So if you are looking to earn an extra income or make a career in the insurance industry, you can become a PoS Insurance Agents.
If you feel you can convince people and make them aware of the importance of insurance. And finally, close the deal. Then you are the one. You may be a Student, a Housewife, a Working Professional, a Retired Person, or even a Business Man, you can be anyone!
Some of the professionals who have achieved success in this field are from:
- Small businesses, the owners who meet regularly with customers,
- People having their own individual insurance business,
- Retired Bankers,
- Financial Advisors,
- Mutual Fund Distributor, etc.
Eligibility Criteria
The following are the minimum requirements to become a PoS Insurance Agent:
- Resident of India
- Minimum age 18-years
- Passed Secondary school, Matriculation, or any other equivalent
- PAN Card
- Aadhar Card
- Bank account
Training: A person applying for a PoS License needs to undergo a minimum of 15-hours training. PoS agents are employed by Insurers, corporate agents & Brokers. PoS agents can promote the products of the recruited insurer only.
Therefore, the training, as well as the certification is provided by the recruiting Insurer.
Certification Test: As stated above, the Certification is provided by the employer. So the test is also taken by them. This test can also be taken online. Even on an android, with certain insurers.
Validity and Scope
pos agent online training and test: WealthBucket
On clearing the PoS test, you will receive a Certificate. This Certificate is valid for life.
PoS Insurance Agents can sell the product of only one company. That is the employer. Though, the same person can become an agent of a Life Insurer as well as a General Insurer. So, he or she can sell the products of 1-Life Insurer as well as 1-General Insurer and 1 Health Insurer.
- They can sell, Pure Term Plans, Non-Linked Non-Participating Endowment Plan ( that show guaranteed maturity & death benefit) & Immediate annuity plan showing guaranteed payouts.
- They can also sell Motor, Travel & Personal accident policies.
- These agents can sell General Insurance that needs minimal underwriting.
- They cannot sell Medical insurance.
Benefits of becoming a PoS Agent
Let’s check some of the advantages of becoming a PoS for the insurance sector:
Free up the Trained Professionals to sell more complex products: The new arrangement has been made for simpler products. The ones that do not require a lot of underwriting efforts to sell to the consumer. Such as Motor Insurance or Travel Insurance. Their terms are easy to understand and explain to the buyers. Such Plans have been put under the ambit of an insurance PoS. This makes the existing full-fledged distributors able to concentrate on the complex products like ULIPs and deferred annuity plans, thus providing dual advantages.
Range of Insurance Products: The products listed by the IRDAI that can be sold by a PoS include Pure Term Insurance Plans (there may or may not be Returns on the product), Motor Insurance, Travel Insurance, and Non-Linked Endowment Plans. In short, the PoS Agent can sell those products that satisfy the below 3 conditions –
- The Insurance Plan is easy to understand and explain
- Benefits from such investment can be calculated and stated beforehand,
- The Plan benefits are fixed, non-fluctuating, and pre-defined
Easy Training: Because the PoS Insurance Advisor can get trained through a reliable financial product broker or an insurance agency. Whether offline or online. And get started with building a full-fledged career. This feature works to the advantage.
At first, only the National Institute of Electronics and Information Technology (NIELIT) could certify trained PoS. But this condition was relaxed later. Now even an Insurer, Broker, or intermediary can train them. This enables quicker onboarding of the salespeople. These parties need to provide training of at least 15 hours and examine the candidate on an objective paper to certify him
Anyone can become a PoS agent after being certified. No matter what you do in daily life, with a little skill, you can sell insurance, protect people financially, and earn good incomes with zero investments from your end. Having said that,
