Becoming a Point of Sales Person (PoSP) in the insurance industry can be an exciting and rewarding career path. The PoSP role allows you to directly sell a wide range of insurance products, including life, health, motor, and business insurance. However, before you start selling, you need to obtain a PoSP Insurance Code, which is issued by the Insurance Regulatory and Development Authority of India (IRDAI). This guide will walk you through the steps to get your PoSP Insurance Code, the requirements, and the benefits of being a PoSP.
What is a PoSP Insurance Code?
A PoSP Insurance Code is a unique identifier provided to certified insurance agents (PoSPs). It signifies that you are officially recognized by the IRDAI to sell insurance products in compliance with industry regulations. This code allows you to legally and professionally operate as an insurance agent, building trust with clients and insurance companies.
Who Issues the PoSP Insurance Code?
The PoSP Insurance Code is issued by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI governs the insurance sector in India and sets regulations that ensure ethical practices, transparency, and consumer protection.
Steps to Obtain a PoSP Insurance Code
1. Research and Choose an Insurance Company
The first step is to identify the insurance company with which you want to associate as a PoSP. Research the company’s products, reputation, and support system to ensure they align with your career goals. Some popular insurers offer PoSP roles, including PBPartners, HDFC Life, SBI Life Insurance, and more.
2. Fulfill the Eligibility Criteria
To apply for a PoSP Insurance Code, you must meet the eligibility criteria set by the insurance company and IRDAI. These typically include:
- Age Requirement: You must be at least 18 years old.
- Educational Qualification: A minimum of Class 10 or equivalent education is typically required. Some insurers may have additional requirements, such as prior experience in sales or insurance.
- Background Check: Some companies may also conduct a background check to ensure you have a clean record.
3. Register on the Insurance Company’s Portal
Once you’ve chosen an insurance company, visit their official website and navigate to the PoSP registration page. You will need to fill out an application form with personal and professional details such as:
- Full name
- Age
- Educational qualifications
- Previous work experience (if applicable)
- Contact information
- Address proof and ID proof
4. Complete the IRDAI Training
After registration, you will need to undergo a training program provided by the insurance company or a recognized training partner. This training, mandated by IRDAI, covers:
- Insurance fundamentals
- Products offered by the company
- Sales techniques and customer engagement
- Regulatory and ethical standards in the insurance industry
The training can be completed online or offline depending on the insurer’s provisions. The typical duration for basic PoSP training is 15-20 hours.
5. Pass the IRDAI Examination
Upon completing the training, you will need to pass the IRDAI examination. The exam evaluates your understanding of:
- Insurance concepts
- The products you intend to sell
- Legal and regulatory knowledge
- Ethical practices in insurance sales
You must score a minimum percentage to clear the exam. After passing, you will receive the PoSP Certification and be authorized to sell insurance policies.
6. Obtain the PoSP Insurance Code
Once you pass the IRDAI exam, you will be issued a PoSP Insurance Code. This unique code acts as your professional identifier in the insurance industry and allows you to sell insurance products. You will also receive access to sales tools, marketing materials, and other resources provided by the insurance company to help you succeed in your role.
Benefits of Being a PoSP Insurance Agent
1. Work Flexibility
As a PoSP, you can work on your own terms. You can set your working hours and work from home or anywhere, offering you a great work-life balance.
2. Earn Commissions
PoSPs earn commissions on the policies they sell, which can be a lucrative source of income. The commission structure may vary based on the insurer and the type of insurance product.
3. Access to Diverse Products
As a PoSP, you can sell a wide variety of insurance products, including life, health, motor, and business insurance, catering to the needs of various customers.
4. Professional Growth
This role offers opportunities for career advancement in the insurance sector. With time, you can specialize in specific products or even build your own team of agents under your PoSP role.
5. Online Platform Access
Many insurers now operate online platforms that make it easy for PoSPs to manage their leads, process applications, and track their sales. This enables efficient business operations.
6. Recognition and Trust
Being a certified PoSP and having the PoSP Insurance Code gives you credibility. Customers are more likely to trust you, knowing you are authorized by IRDAI and adhere to ethical standards.
How Does a PoSP Insurance Agent Earn Commissions?
PoSPs primarily earn commissions based on the insurance policies they sell. The commission structure varies depending on the type of insurance and the insurance company. Base commissions are calculated as a percentage of the premium paid for each policy. PoSPs may also receive bonuses or incentives based on sales targets.
Key Points About Commissions:
- Renewal Commissions: PoSPs may also earn commissions on policy renewals, providing a steady income stream.
- Performance-Based: The higher your sales, the more you can earn. PoSPs can increase their income by selling more policies and achieving performance targets.
- Varied Commission Rates: The commission percentage can vary between insurance companies and the type of product sold (life insurance typically offers higher commissions than motor insurance).
FAQs
What is an insurance PoSP code?
A PoSP Insurance Code is a unique identifier given to certified insurance agents (PoSPs) by the IRDAI. It allows them to legally sell insurance products.
How do I apply for PoSP?
To apply for PoSP, you need to be at least 18 years old, have a minimum educational qualification (typically 10th grade), and register with an insurance company. After training and passing the IRDAI exam, you will receive your PoSP Insurance Code.
What is the minimum age to become a PoSP?
The minimum age to become a PoSP is 18 years.
How long does the PoSP training take?
The training typically lasts between 15 to 20 hours, and it can be completed either online or offline, depending on the insurance company’s offerings.
Is there an exam to become a certified PoSP?
Yes, after completing the required training, you must pass an exam to become a certified PoSP. The exam tests your knowledge of insurance products, regulations, and ethical practices.
Can I sell all types of insurance as a PoSP?
Yes, as a PoSP, you can sell a wide variety of insurance products, including life, health, motor, property, and more, depending on your insurance company’s offerings.
How do PoSP agents earn commissions?
PoSP agents earn commissions based on the premium of the policies they sell. Commission rates may vary depending on the type of policy and the insurance company.
Conclusion
Getting a PoSP Insurance Code is a great way to enter the insurance industry and start a rewarding career as an insurance agent. By following the steps outlined in this guide, you can become a certified PoSP, gain access to a range of insurance products, and begin earning commissions on the policies you sell. The role offers flexibility, professional growth, and an excellent income potential, making it an ideal choice for those looking to venture into the world of insurance.
