How to Get a POSP Licence in India: Step-by-Step Guide

Many people are now on a quest to find a career that offers flexibility, a good income, and a sense of purpose in their work. The Indian insurance industry is a field where people can find these opportunities, especially in the role of a POSP (Point of Sales Person) partner. 

A POSP insurance partner plays a vital role in connecting insurance companies with their clients, helping them select the best insurance plans to cover their health, life, and property. To become a POSP partner, one needs to meet the eligibility criteria and obtain a POSP licence. 

Learn more about the POSP licence, eligibility criteria, and registration steps in the guide below!

 

 

What is a POSP Licence?

A POSP licence is issued in accordance with the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). Under this licence, one may practice as a Point of Sales Person (POSP) and act as an insurance advisor on behalf of many insurance companies.

Upon being granted a POSP insurance licence, you can carry out the following tasks:

• Offer and sell simple, plain vanilla products to customers.

• Receive a commission on every policy that is sold.

• Work as an insurance advisor, either on a part-time or full-time basis

The validity of the licence remains in effect as long as the POSP partner adheres to the IRDAI regulations and remains connected to a registered insurance company or an insurance intermediary.

What are the Eligibility Requirements to Get a POSP Licence?

Before you begin the training or registration process, it is essential to verify your eligibility. Below are the basic eligibility criteria to get a POSP licence:

1. Candidate’s Age and Citizenship

Applicants must be at least 18 years old and should be an Indian citizen or resident. This requirement is widely followed by insurers and aligns with the guidelines set by the Insurance Regulatory and Development Authority of India (IRDAI).

2. Insurance Partner Qualifications

A minimum educational qualification of 10th standard (Matriculation) is required to become a POSP insurance partner.

 

3. Documents and Bank Account Details

The applicant should provide valid identity documents such as Aadhaar or PAN, address proof, and a bank account for commission purposes. In some instances, the insurance companies may require the candidates to provide photographs during the registration process.

4. No Duplicate Registration

If an individual already has an active partner code registered with another insurance company or intermediary, they may not be eligible to apply for POSP registration until the existing registration is cancelled or resolved. This regulation helps avoid conflicts and duplication within the insurance distribution system.

How to Get a POSP Licence in India: Step-by-Step

The steps to follow for POSP registration are as follows:

Step 1: Register with an Authorised Platform

To begin the procedure, you have to sign up with an insurance company or broker of your choice. This is the first stage, where basic information is provided, and the eligibility for the licence is verified.

Step 2: Submit the Required Documents

Next, you need to submit the required documents for the verification process. They may include:

• Aadhaar Card

• PAN Card

• Educational Qualification Certificate

• Passport-Size Photo

• Bank Account Details for Commission Purpose

Step 3: Complete the Mandatory Training for POSP

In order to become a successful insurance partner, you must complete the 15-hour IRDAI-mandated training course. It gives you a detailed overview of the following:

1. Basics of the insurance company

2. Various types of policies and coverage 

3. Compliance rules

4. Ethics

This is a critical step because it lays the foundation for building the knowledge base required to provide guidance to your clients.

Step 4: Appear for the POSP Certification Exam

After completing your training, it is mandatory to appear for a POSP certification exam. This is an online test designed to assess your knowledge of key areas of insurance. Clearing this test ensures that you have acquired adequate knowledge to work as a POSP insurance partner.

Step 5: Background Verification and Approval

Before awarding your licence, your selected insurer or intermediary may carry out a background verification. It is a verification process to ensure you have no serious legal issues and are fit for this field.

Step 6: Receive Your POSP Licence

Finally, after completing your training and clearing your test, you are now eligible to receive your POSP licence/certification. This formally authorises you to work as a certified POSP insurance partner.

Advantages of Getting a POSP Licence in India

The main advantages of getting a POSP licence are as follows:

• Become Your Own Boss

A POSP licence lets you be your own boss without having to work in a traditional office setup. You can set your own working style and achieve your personal goals without the pressure of a conventional job.

• Opportunity to Sell Multiple Insurance Products

According to the IRDAI directive, you may seek a POSP licence and sell various insurance policies to your clients. These may include motor insurance, health insurance, travel insurance, personal accident insurance, and specified life insurance products.

• Flexible Working Schedule

By obtaining a POSP licence, you can enjoy flexible working hours. This means you can work at your convenience and for as many hours as you wish.

• No Major Investment Required

A major advantage of acquiring a POSP licence is that it does not require a heavy financial investment. You just need to pay the training fees charged by the insurer (free in some cases) and devote time to mastering the course and cracking the exam. 

• Work from Anywhere

A POSP licence would enable you to work from anywhere without the need to establish a physical office. You can connect with clients through calls, online platforms, or mobile applications and help them purchase suitable insurance policies.

• Performance-based Income 

With a POSP licence, there is no fixed earning limit. Your income grows based on the number of policies you sell and the commissions you earn, giving you the opportunity to increase your revenue as you gain more clients.

Disclaimer: Income varies based on performance, product mix, client renewals, and market conditions. There is no guaranteed income.

Conclusion

Obtaining a POSP licence is one of the easiest ways to start a career in the insurance industry in India. With minimal eligibility criteria and a quick training and certification process, anyone can become a licensed POSP and start helping people choose the best insurance products for their needs.

What’s more, you can work from home and set your work timings as per your convenience. So, no matter whether you are a student, a working person, a housewife, or someone seeking an additional source of income, this opportunity offers you a practical means of establishing a sustainable career in the insurance business.

Wondering where to start?

Join InsuranceDekho and take the first step to becoming a POSP partner!

 

FAQs about Getting a POSP Licence in India

1. What is a POSP licence in India?

A POSP licence is an official certification that allows an individual to sell specific types of insurance products on behalf of an insurance company or intermediary. This licence is given as per the guidelines of the Insurance Regulatory and Development Authority of India.

2. Who can apply for a POSP licence?

Any individual who is 18 years old and has completed at least Class 10 can apply for a POSP licence.

3. Is POSP certification mandatory to sell insurance in India?

Yes, an individual needs to be certified as a POSP partner if they wish to sell specific types of insurance products legally in India.

4. How long does it take to get a POSP licence?

Obtaining a POSP licence in India may take anywhere from a few days to a week, as it involves a 15-hour IRDAI-mandated training session, followed by an exam. The entire process is digital. 

5. How difficult is the certification exam for becoming a POSP?

The certification exam for becoming a POSP is easy if you complete the training. It is based on basic knowledge of insurance, types of insurance plans, and guidelines.

6. What kind of insurance products can a POSP partner sell?

A licensed POSP partner is eligible to sell insurance products such as health insurance, motor insurance, travel insurance, personal accident insurance, and life insurance with simplified underwriting.

7. Can a POSP partner work part-time?

Yes, one of the advantages of becoming a POSP partner is that you can work part-time or full-time according to your availability and income goals.

8. Does a POSP partner earn a fixed salary?

POSP partners normally receive commissions on the insurance policies that they sell. The revenue will be determined by the number of policies sold and the commission structure set by the insurer.