The Point of Sales Person (PoSP) insurance model was introduced by the Insurance Regulatory and Development Authority of India (IRDAI) in 2015 to help increase insurance penetration in the country.
PoSPs are individuals who are authorized to sell insurance products to various insurance companies. In simple terms, a PoSP is a licensed insurance agent who can sell insurance policies to customers on behalf of insurance companies. They are authorized to offer insurance products like health insurance, life insurance, and motor insurance to customers.
Become A PoSP Now
The PoSP model was introduced to make it easier for people to buy insurance by creating a more accessible distribution channel. The traditional insurance buying process can be complicated, and many people find it difficult to understand the various policy features and benefits. The PoSP model aims to simplify this process by enabling customers to buy insurance through a single point of contact – the PoSP.
Under the PoSP model, insurance companies can appoint individuals as PoSPs after they have completed a prescribed training program and passed an exam. The training program is designed to provide them with the knowledge and skills required to sell insurance products effectively.
Once appointed, PoSPs can sell insurance products to customers, and they earn a commission on each policy they sell. The PoSP model has helped increase insurance penetration in India, making it easier for people to buy insurance.
Overall, the PoSP model is a great initiative by the Indian government to increase insurance penetration in India by providing a more accessible distribution channel for insurance products. It has made the process of buying insurance more straightforward for customers, while also providing employment opportunities for individuals who wish to work as insurance agents.
Read More: How to become a PoSP Insurance Agent
How is PoSP different from traditional Insurance Agents?
The traditional model of insurance agents in India involves hiring agents who insurance companies appoint to sell their policies to customers. These agents must undergo a training program and pass an exam conducted by the Insurance Regulatory and Development Authority of India (IRDAI) before selling policies. The traditional model of insurance agents has been in existence for a long time and has been the primary mode of distribution for insurance products in India.
The PoSP insurance model, on the other hand, is a more recent development introduced in 2015. The PoSP model is a simplified version of the traditional model of insurance agents, designed to make insurance products more accessible to customers.
One of the main differences between the traditional model of insurance agents and the PoSP model is the level of training required. Traditional insurance agents are required to undergo a more extensive training program, while PoSPs are only required to complete a shorter training program.
The PoSP training program is designed to provide individuals with the basic knowledge required to sell insurance products effectively. The training program covers topics such as the various types of insurance products, the features and benefits of these products, and how to sell these products to customers effectively. The training program also covers the regulatory requirements for selling insurance products, such as the rules and regulations set by the IRDAI.
Another key difference between traditional insurance agents and PoSPs is the level of compensation. Traditional insurance agents are typically paid a fixed salary or a combination of salary and commission for selling insurance products. PoSPs, on the other hand, are paid only on a commission basis. The commission paid to PoSPs is typically lower than that paid to traditional agents, but PoSPs have the advantage of being able to sell policies from multiple insurance companies.
The PoSP model is also designed to make the insurance buying process more convenient for customers. PoSPs are authorized to sell policies on the spot, eliminating the need for customers to go through a lengthy application process. PoSPs are also authorized to collect premiums on behalf of insurance companies, making it more convenient for customers to pay their premiums.
In summary, the PoSP insurance model is a simplified version of the traditional model of insurance agents designed to make insurance products more accessible to customers. PoSPs undergo a shorter training program, are paid on a commission-only basis, and are authorized to sell policies from multiple insurance companies. The PoSP model is designed to make the insurance buying process more convenient for customers by allowing PoSPs to sell policies on the spot and collect premiums on behalf of insurance companies.
What products can a PoSP sell?
Insurance POSP (Point of Sales Person) can sell a variety of insurance products depending on their license and certification. Here at PBPartners, a partner gets the opportunity to sell different insurance products and plans from more than 26 of India’s biggest insurers. A PoSP can offer the following PoSP-approved insurance products through PBPartners:
1. Health Insurance
Health insurance is a type of insurance that provides financial protection against the cost of medical and surgical expenses incurred by an insured person. In India, there are different types of health insurance listed below:
- General/ Individual Health Insurance
General or individual health insurance covers an individual in case of any medical emergencies. The individual receives the incurred medical expenses from the insurer up to the sum insured. For instance, if a person has a sum insured of Rs. 5 lakhs, he/she can claim up to this amount, and the rest he/she has to bear from his own pockets.
- Senior Citizen Insurance
Senior citizen health insurance is a type of health insurance policy that is specifically designed for individuals who are aged 65 years and above. As people age, the risk of developing medical conditions and requiring healthcare increases. Therefore, senior citizen health insurance policies offer comprehensive coverage for various medical expenses incurred by senior citizens.
- Family Health Insurance
A family health insurance plan is a type of health insurance that covers the medical expenses of an entire family, including the policyholder, their spouse, and their dependent children. The sum insured is divided evenly among the plan’s beneficiaries. The premium is lower when compared to the Individual Health Insurance Policy as each family member buys one.
2. Life Insurance
Life insurance can provide financial security and peace of mind for those who depend on the policyholder’s income, such as a spouse, children, or other family members. It can help cover expenses such as funeral costs, outstanding debts, and ongoing living expenses.
There are different types of life insurance policies, including term life insurance, whole life insurance, and universal life insurance. Each type of policy has its unique features and benefits, and it’s important to carefully consider your needs and goals when choosing a life insurance policy.
- Term Life Insurance
Term life insurance is a type of life insurance policy that provides coverage for a specified period or "term." This type of policy pays a death benefit to the policy’s beneficiary if the insured individual dies within the term of the policy. Term life insurance policies are typically sold in terms of 5, 10, 15, 20, 25, or 30 years, with the premium being determined by the age, health, and lifestyle of the insured individual at the time of policy issuance.
- Child Saving Plans
Child saving plans are financial instruments designed to help parents or guardians save money for their children’s future education or other expenses. These plans typically involve making regular investments to ULIP, NSC, PPF, Recurring deposits, Sukanya Samridhi Scheme, or other investment vehicles, which are then used to provide a lump sum payment when the child reaches a certain age.
- Guaranteed Return Plans
Guaranteed Return Plans are investment products offered by insurance companies that provide a guaranteed rate of return on the investment amount. These plans are a type of investment-cum-insurance plan, which offers the benefits of both insurance and investment.
- Retirement Plans
Retirement plans are financial products designed to help individuals save and invest money to provide for their financial needs during retirement. Retirement planning involves creating a financial plan to accumulate wealth and manage assets so that an individual can maintain their lifestyle after they retire from work.
3. Motor Insurance
Motor insurance is a type of insurance policy that provides financial protection to vehicle owners against the costs associated with accidents, theft, or damage to their vehicle. Motor insurance covers the policyholder against financial loss in case of any damage or loss to their vehicle or in case of any liability arising from accidents involving their vehicle. Motor insurance is mandatory in most countries, and the type and level of coverage required vary by jurisdiction.
- Two-Wheeler Insurance
Two-wheeler insurance is a type of insurance policy that provides financial protection against damage or loss to a two-wheeler vehicle, such as a scooter, motorcycle, or moped. It covers the owner or rider of the vehicle against various risks, including accidents, theft, natural calamities, and third-party liabilities. The two types of two-wheeler insurance policies available are comprehensive insurance and third-party insurance.
- Car Insurance
Car insurance is a type of insurance policy that provides financial protection to car owners against any loss or damage caused to their car due to various unforeseen events, such as accidents, theft, natural calamities, and third-party liabilities. In most countries, car insurance is mandatory for car owners to have. The two primary types of car insurance policies are third-party insurance and comprehensive insurance.
- Commercial Vehicle Insurance
Commercial Vehicle Insurance is a type of insurance policy designed to protect vehicles used for business purposes. It covers a wide range of vehicles including trucks, vans, buses, and trailers, and protects against damage to the vehicle, liability for third-party bodily injury or property damage, and other related risks. Commercial Vehicle Insurance is typically purchased by businesses that rely on their vehicles to operate, such as delivery companies, transportation companies, or contractors. It is different from personal auto insurance as it provides coverage for commercial activities and the risks associated with them.
4. Travel Insurance
Travel insurance is a type of insurance that provides coverage for unexpected events that may occur before or during a trip. It is designed to protect travelers from financial losses that may result from situations such as trip cancellations, medical emergencies, lost or stolen baggage, and other travel-related incidents.
5. Home Insurance
Home insurance, also known as homeowner’s insurance, is a type of insurance that provides coverage for the cost of repairing or rebuilding a home and its contents in the event of damage or loss. It is designed to protect homeowners from financial losses due to events such as natural disasters, theft, and accidents.
6. Fire and Allied Perils (Dwellings)
Fire and Allied Perils (Dwellings) is a type of insurance policy that provides coverage for damages caused to residential properties due to fire and other allied perils. It is designed to protect homeowners from financial losses due to events such as fire, lightning, explosion, earthquake, flood, storm, impact damage, and more.
Winding Up!
With PBPartners, you can unlock a world of opportunities in just a few easy steps. By becoming a POSP insurance agent and registering on our online portal or app, you can earn attractive compensation while remaining mobile. This profession offers flexibility and can be a great option whether you are struggling with your internship or planning for retirement. You have the power to turn things around whenever you desire. Don’t hesitate any longer and say ‘yes’ to a career that you can choose on your terms.
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