Want to start a career in the insurance sector? Discover the step-by-step process to become a POSP insurance agent in India, including eligibility, registration, training, and commission details.
Anjali Singh
Assistant Manager
A POSP is a representative of insurance companies who sell various insurance products. It can be a rewarding career with good potential to earn. If you choose this career opportunity, it will enable you to work at your own pace and earn a performance-based commission. You can also help people secure their financial future.
Today, there is a higher scope of business in the insurance sector, and the role of an insurance agent has become a lucrative career option. In this guide, you will learn how to become a POSP insurance agent in detail.
POSP stands for Point of Sales Person. An insurance POSP agent is a licensed individual authorised by IRDAI to sell pre-approved insurance products on behalf of insurance companies. This model was introduced specifically to improve insurance penetration in Tier 2 and Tier 3 cities.
POSP agents are not the same as traditional agents. A conventional insurance agent is typically tied to one company. A POSP can represent products from different insurance providers. This gives more flexibility to both the agent and the customer. However, the product range is limited to pre-underwritten, IRDAI-approved products only.
If you become POSP agent, the sales process will be straightforward and manageable. You will need to find leads and match customers to suitable products from their portfolio. Commission is paid on every policy sold, and there's no cap on earnings.
Before starting the insurance POSP registration process, check whether you meet the basic requirements:
No prior work experience in insurance is required to become a POSP insurance agent. Students, homemakers, and working professionals can all apply. That said, meeting the minimum criteria doesn't mean every insurer will onboard you without scrutiny. Most insurance companies run a background check before issuing a POSP number.
Document preparation is where most delays happen. The standard documents asked during insurance POSP registration are:
Some insurers may also ask for GST registration details. This is only required if your annual commission income is expected to exceed the threshold for GST liability. If you don't have GST registration, most platforms allow you to proceed without it for the initial onboarding.
To become POSP agent, you will have to complete five stages. They are:
You can register directly with:
Both options provide the same certification, but the product portfolio you'll sell will be different.
Choose based on what you want to sell and the support structure the platform provides. Most reputable platforms offer post-onboarding training, marketing tools, and a relationship manager.
Once you've selected a platform, visit the POSP registration section online. Fill in the application form and upload all of your documents. If your documents are in order, you'll be cleared to proceed to training.
Ensure file quality when uploading scanned documents. Blurry or partially visible Aadhaar cards are one of the most common reasons applications get sent back for resubmission. Also, make sure that the details you enter are correct and updated to prevent unnecessary delays.
To become insurance POSP agent, you will have to complete a minimum of 15 hours of training. This has been mandated by IRDAI. This training covers:
Most insurance companies conduct this online. This means that you can complete the POSP training at your own pace.
The 15-hour minimum is the regulatory requirement. Some insurers and platforms build longer programmes, particularly if you're being trained to sell multiple insurance products. You can't skip or compress the training. You will need the training completion certificate to register for the exam.
After you complete the training, you'll sit for the IRDAI POSP exam. It's conducted by the Insurance Institute of India (III) on behalf of IRDAI. The exam consists of 50 multiple-choice questions to be completed in 60 minutes. Passing marks are 18 out of 50 (36%). There's no negative marking.
The exam is available online and at IRDAI-approved test centres across India. It's offered in English, Hindi, and several regional languages. The syllabus covers:
If you don't clear the exam on the first attempt, you can retake it. There's no restriction on the number of attempts. However, each attempt requires a fresh registration fee. Candidates who are well prepared generally clear the POSP insurance exam in the first sitting.
Once you pass the exam, the insurer or platform issues an appointment letter within 15 days of receiving exam results. A unique POSP code is allotted to you and included in the appointment letter. This code identifies you as a licensed agent in every transaction.
After onboarding, you'll get access to the company’s:
After this, you have successfully become a POSP insurance agent. Commissions are credited to your registered bank account after each successful policy sale.
The product scope is defined by IRDAI. It is limited to pre-underwritten, standardised products only. The categories you can sell depend on what your certification covers. Some agents can certify across multiple categories as well.
|
Category |
Examples of Products |
|
Life Insurance |
Term plans, endowment plans, whole life plans, child plans, ULIPs |
|
Health Insurance |
Individual health plans, family floaters, senior citizen policies, critical illness covers |
|
General Insurance |
Motor insurance (two-wheeler and four-wheeler), travel insurance, home insurance |
When you pass the exam, you get the license to become POSP agent. However, building a viable business can be a different challenge. Here are some points that you should keep in mind to build a successful career as an insurance agent:
The path to become a POSP insurance agent in India is extremely straightforward and simple. The eligibility bar is set deliberately low, and the training sessions are manageable. The exam to get licensed is easy for anyone who goes through the study material carefully. Getting a certificate does not make you successful in this career path. You will need to consistently build and provide good service to your client base.
At My Mudra, we understand that the right insurance is more than just protection. It is a smart investment in your future. Our platform helps you compare and choose from a wide range of plans at affordable premiums, so you can secure yourself and your family with confidence. Simply select the insurance plan that fits your needs, upload your documents, and get your policy issued instantly.
Also Read:
- What is POSP Insurance? Meaning, Eligibility, Commission & Best POSP Insurance Companies in India
- Best POSP Insurance Companies in India: Commission, Training, Support & Growth Opportunities
To become insurance POSP, you need to meet the basic eligibility criteria and submit your documents to an IRDAI-registered insurance company. After this, you’ll need to complete the mandatory 15-hour training and clear the IC-38 certification exam. Once you pass, the platform issues a POSP code and an appointment letter.
Yes. IRDAI mandates a minimum of 15 hours of training for all insurance POSP agent candidates before they're eligible to sit for the certification exam. You can't register for the exam without completing and submitting the training. Most platforms offer this online, so the schedule is flexible, but the hours can't be skipped or substituted.
Yes, a student can become a POSP insurance agent as long as they're at least 18 years old and have passed their Class 10 board examination. There's no requirement for a college degree or prior work experience. Students often use the POSP model as a part-time income source alongside their studies. Working as a POSP agent is commission-based and there are no fixed working hours.
Assistant Manager
Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.
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