A Point of Sales Person, commonly called a POSP, is a category of insurance intermediary created by IRDAI to sell simple, pre-approved insurance products such as two-wheeler and car insurance, health policies, personal accident cover, travel cover and basic term plans. The training requirement is short, the products are standardised, and almost all the work can be done on a mobile phone or laptop. This is why the POSP role has become popular with people who want flexible, home-based work in the financial sector.
A POSP is attached to an insurer, an insurance broker or a corporate agent, which supplies the app, the quotes and the policy issuance system. The POSP finds customers, explains the product, collects the details and completes the purchase digitally, and the sponsoring company pays a commission on each policy. The role suits homemakers, students over 18, small shop owners, two-wheeler mechanics, mobile shop owners, retired people and anyone with a wide local network.
This guide covers the day-to-day work, the 15-hour IRDAI training and exam, who is eligible, the documents required, how pay is structured in general terms, what the sponsoring company should give you in writing, working patterns, growth options, and the scams to avoid. All figures are indicative and vary by company, city and experience.
How POSP Work Looks on a Normal Day
Most POSP work is motor insurance renewal. A POSP keeps a list of vehicle owners with their policy expiry dates, sends a reminder a few weeks before expiry, generates quotes from several insurers through the partner app, explains the difference between third-party and comprehensive cover, and completes the renewal with online payment by the customer. The policy document is emailed instantly. Health insurance work is similar but takes more time because the POSP must explain the sum insured, waiting periods, room rent limits and the network hospital list, and the customer may need a medical check.
Beyond selling, a POSP helps customers with claim intimation, document upload and follow-up with the insurer, which is the part of the job that earns long-term trust and references. Good POSPs keep a simple spreadsheet or notebook of every policy, expiry date and customer contact, because renewals are the base of a stable income in this work.
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Products a POSP Can and Cannot Sell
IRDAI limits the POSP category to simple products where the terms are clear and the sum insured is within prescribed limits. Typically allowed products include two-wheeler, private car and commercial vehicle insurance, individual and family floater health policies up to a limit, personal accident cover, travel insurance, home insurance for contents and structure, and pure term life plans with simple underwriting. Complex products such as unit-linked plans, large group policies or marine cargo are outside the POSP scope and need a fully licensed agent or broker.
Eligibility Conditions
- Age: 18 years or above; no upper age limit.
- Education: minimum 10th standard pass. A 12th pass or graduate background helps with health insurance explanations but is not required.
- Training: a 15-hour training module on insurance basics, products, ethics and process, delivered online or offline by the sponsoring insurer, broker or corporate agent.
- Exam: an online objective test conducted by the sponsoring entity after training, as per IRDAI guidelines, with a modest passing mark.
- Identity: PAN, Aadhaar and a bank account in the applicant name.
- Exclusivity: a POSP can be attached to only one sponsoring entity at a time, though a broker platform gives access to many insurers through that single tie-up.
The 15-Hour Course and Certification Process
The IRDAI framework requires the sponsoring entity to train every POSP for at least 15 hours before certification. The content usually covers principles of insurance, the main types of motor and health products, premium and claim basics, how to fill a proposal honestly, anti-money-laundering rules and the code of conduct. Most companies deliver this through a mobile app with short videos and quizzes that can be completed over three to five days.
After the training, the candidate writes an online test. On passing, the sponsoring company issues a POSP certificate and a unique code, uploads the details to the regulator database, and activates the selling account in the app. There is no separate IRDAI licence like the IC-38 for full agents, which is why the whole process can be finished within a week.
| Feature | POSP | Individual Agent (IC-38) |
|---|---|---|
| Training | 15 hours by sponsoring entity | Longer prescribed training through insurer |
| Exam | Internal online test under IRDAI norms | IC-38 exam by Insurance Institute of India |
| Products | Simple pre-approved products within limits | Full product range of the insurer |
| Attachment | One insurer, broker or corporate agent | One life, one general, one health insurer |
| Typical work mode | Mostly digital, from home or shop | Field visits plus digital |
Documents Usually Required
- Self-attested copy of PAN card and Aadhaar.
- 10th standard mark sheet or certificate.
- Recent passport-size photograph and a scanned signature.
- Cancelled cheque or bank passbook copy for commission payouts.
- Mobile number and email ID that will be linked to the POSP code.
- Signed POSP agreement with the sponsoring entity.
How Pay Is Structured
A POSP has no salary. Income is commission on each policy sold, paid by the sponsoring entity after the policy is issued and the premium is realised. Motor commission is a percentage of the own-damage premium and is generally modest per policy, so volume matters. Health policies pay a higher percentage of the first-year premium and also a renewal commission every year the customer continues. Some platforms add monthly reward slabs for crossing a number of policies.
As an indicative picture only, a part-time POSP handling a few dozen motor renewals a month may see roughly ₹5,000 to ₹15,000, while a full-time POSP with a mix of motor and health business in a city may see roughly ₹15,000 to ₹30,000 a month. These ranges vary widely by company, city and experience and are not assured. Before you start, ask the sponsoring entity to give you in writing: the commission grid for each product, the payout cycle, the minimum payout threshold, the TDS treatment, the clawback rule on cancellations, and the conditions of any reward scheme.
Working Hours, Targets and Support
A POSP chooses his or her own working hours. There is usually no fixed target, but many platforms deactivate codes that show no business for several months, so check the inactivity rule. The sponsoring entity provides the app, quote engine, policy issuance, a support helpline and sometimes lead sharing. The POSP provides the customer relationship. Internet connectivity, a smartphone and basic comfort with digital payments are the only equipment needed.
Peak work comes in the days before month-end and in the months when many vehicle policies expire, so plan reminders a few weeks ahead. Keep a fixed slot each day for follow-up calls, and set aside time each week to read product updates sent by the sponsoring entity, because premium rates and plan features change often and customers expect correct answers.
Growth Paths from the POSP Role
- Build a renewal book of motor and health customers so that income becomes steadier year on year.
- Move up to a full individual agent licence through the IC-38 route to sell the complete product range.
- Join a broker or insurer as a salaried relationship manager, which many companies fill from experienced POSPs.
- Add related registrations later, such as mutual fund distribution through NISM certification, under separate rules.
- Specialise in commercial vehicle or small business insurance where ticket sizes are larger.
Simple Checklist Before Enrolling
- Confirm that the sponsoring entity is a registered insurer, broker or corporate agent by checking the registration details it publishes.
- Complete the full 15-hour training yourself; do not let anyone complete it on your behalf.
- Keep a copy of the POSP certificate, code and the signed agreement.
- Ask for the commission grid and payout rules in writing before selling the first policy.
- Make a list of vehicle owners, families and shopkeepers you know and note their renewal months.
- Learn the basic health policy terms so you can explain them honestly to customers.
Scam Warning: Fake POSP Registration Offers
Because POSP registration is quick and widely advertised, fraudsters copy the format. Common tricks include a registration or certification fee paid to a personal UPI ID, a promise of fixed monthly salary for a POSP role, a WhatsApp offer letter from an unknown number, a demand for a refundable security deposit or an ID card charge, and fake apps that ask for your OTP, card PIN or net banking password during onboarding. Genuine sponsoring entities do not charge a joining deposit and do not pay a salary to POSPs.
Verify the company through its official website, make sure the registration email comes from the company domain, confirm the registered office address and call the published helpline before sharing documents. Never hand over a signed blank form. If you have paid or shared banking details with a suspicious party, report it to your bank and the local police right away.
Frequently Asked Questions
Can I be a POSP with two different companies?
No. IRDAI rules allow a POSP to be attached to only one sponsoring entity at a time. A broker tie-up gives access to several insurers through that single attachment.
Is there any fee for POSP training or the exam?
Most sponsoring entities provide the training and test free of cost through their app. A small fee, if any, should be paid only to the company against a receipt.
Do I need to visit customers physically?
Not necessarily. Motor renewals and many health policies can be completed over phone, WhatsApp and the app. Meeting customers in person helps build trust for larger policies.
Is POSP income taxable?
Yes. Commission is income and the sponsoring entity usually deducts TDS. Keep records and file your income tax return as required.
Can a student or homemaker become a POSP?
Yes, anyone aged 18 or above with a 10th pass certificate, PAN and a bank account can enrol, subject to the sponsoring entity accepting the application.
Final Thoughts
The POSP route is one of the quickest legitimate entries into insurance work and fits people who want to earn from home at their own pace. The work is real selling and servicing, income is commission based and takes time to build, and the rules of honest disclosure apply fully.
Choose a registered sponsoring entity, finish the training properly, get the commission terms in writing and keep careful records of every customer and renewal date.
Disclaimer: This article is for general information only. It is not legal, financial, investment, insurance or employment advice. Rules, exams, fees, vacancies and pay change regularly, so confirm all details directly with the employer, the regulator or the official notification before applying, paying any fee or signing any agreement.
Figures quoted here for posp insurance advisor work from home are approximate and based on commonly reported pay. Actual offers depend on the employer, location and your experience; always confirm the amount in the written contract or through the first Helpful Links portal.
