POSP Certification and Licensing in India: Eligibility, Training & Exam Process

Ever thought about a career where you have the power to select your work schedule, build a robust source of income, and at the same time help people protect their financial well-being? This is what a career as a POSP insurance partner offers. A POSP insurance partner is a professional responsible for providing insurance products to prospective clients and acts as a vital link between the insurance company and the end customer.

From health insurance and motor insurance to travel and life insurance, a POSP insurance partner helps the end customer select the best insurance product according to their needs. This blog explains the entire POSP training, licensing, and certification journey, and more. 

Read on for a detailed analysis!

 

What is a POSP Certificate?

A POSP Certificate, also known as a Point of Sales Person Certificate, is a certification given under the rules and regulations of the Insurance Regulatory and Development Authority of India (IRDAI). This certification gives the holder the authority to distribute certain pre-approved insurance products on behalf of the insurance company.

With a valid POSP Certificate, the holder is legally authorised to sell the following simple plain vanilla types of insurance products:

• Motor insurance

• Health insurance

• Travel insurance

• Personal accident insurance

• Selected Life Insurance Products

The main idea behind the introduction of the POSP framework by the IRDAI was to improve insurance penetration in India. Not only does this enable insurance companies to reach their customers more easily, but it also provides opportunities for individuals who want to start a career that is flexible and independent in the field of insurance.

What Do You Need to Qualify for POSP Certification?

Before starting with the training or registration process, you should first check whether you qualify to become a POSP partner. As compared to other professions, the requirements to become a POSP insurance partner are quite simple. These are as follows:

1. Age and Citizenship

To become a POSP insurance partner, you must be at least 18 years old. Also, as per the requirements of the Insurance Regulatory and Development Authority of India, the candidate should be an Indian citizen or a legal resident of India.

2. Insurance Partner-specific Qualifications

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

3. Documents and Bank Account

During the registration process, candidates are required to provide basic documentation. These include: 

1. Identity proofs (PAN)

2. Address proofs 

3. Bank account details 

4. Recent passport-size photographs of candidates

4. No Duplicate Registration

An individual cannot have multiple active insurance partner codes at any given time. If you are already registered with another insurer or intermediary, you may need to close the previous registration before making your application as a POSP.

Once the above conditions are met, the next step is to undergo the mandatory training and certification to become a POSP insurance partner.

What is the POSP Certification Exam?

The POSP certification exam is an important test that must be passed by candidates after completing their training programme. As per the guidelines set by IRDAI, it is necessary for all candidates to complete a minimum of 15 hours of training under an insurer or intermediary with whom they wish to register as an insurance partner.

This training programme is designed to equip candidates with the knowledge and skills required to sell insurance products appropriately. Only after completing their training programme can candidates sit for the POSP certification exam.

The exam will test candidates’ knowledge in many important areas, including:

• Basic concepts related to insurance

• Different types of insurance policies

• Best practices for providing customer service

• Regulations related to insurance

• Ethical practices related to selling insurance products

Once candidates clear their certification exam, they will be issued a license for selling insurance products under the POSP category, marking their entry as insurance partners.

How does the POSP Training and Certification Work?

Here is a detailed overview of how the POSP training and certification work:

1. Complete Mandatory Training Hours

It is necessary for candidates to complete their training programme before they can sell insurance products as a POSP insurance partner. As per IRDAI guidelines, candidates must complete their training programme for a minimum of 15 hours.

2. Understand the Training Content

The training content includes insurance concepts and operational knowledge that an insurance partner should have. These concepts generally include insurance basics, regulatory guidelines, product knowledge (motor, health, travel insurance, etc.), ethical sales practices, documentation, digital policy processes, etc.

3. Complete the Examination and Certification

After completing the training, candidates have to appear for a POSP insurance partner exam, which can be conducted online or offline. Once the candidate has successfully passed the examination, they will be issued a certificate that allows them to work as an insurance partner for a particular insurance company or intermediary under the POSP umbrella. 

Without completing these formalities, it is not legally possible for an insurance partner to sell insurance products.

4. Continual Learning

Some insurance companies also offer continual learning opportunities for insurance partners from time to time. This will enable insurance partners who have successfully completed their POSP training to stay competitive in their field by learning about the latest digital tools and products.  

Step-by-Step Registration Process for POSP Partners

The process of becoming an insurance partner under the POSP umbrella is quite simple. The following steps explain how the process typically works.

Step 1: Fill in the Application Form

Visit the insurer’s website or the intermediary portal and select the option “Become a POSP.” Fill in the required details, including your name, contact information, educational qualification, PAN number, Aadhaar details, and bank account information.

Step 2: Upload Documents and Complete KYC

After submitting the application, you will be required to upload supporting documents for verification. Once the documents are verified and KYC is completed, you will receive access to the training portal. 

Step 3: Training Initiation

You can then start the 15-hour training programme, which is usually completed across multiple sessions.

Step 4: Complete Exam and Certification

Once the training is completed, you need to appear for the POSP insurance exam. After the exam is cleared, the POSP code is generated, and the individual is registered with the Insurance Information Bureau (IIB) portal, enabling them to act as a POSP partner.

Step 5: Contract Signing and Onboarding

After the certification, the candidate enters into a contract with the insurer or the intermediary. The partners receive brochures detailing the products, sales tools, client management tools, and the commission structure.

Step 6: Start Selling Policies

Now, the insurance partners are ready to start selling the insurance products. At this stage, most POSP insurance partners start selling insurance to their personal contacts, such as friends and family.

POS Exams in India

To work as a POSP insurance advisor in the insurance industry and become part of an insurer or broker company, candidates need to pass the certification exam.     

Topics Covered in the POSP Insurance Partner Exam

Before appearing for the exam, the candidates need to undergo the mandatory training specified by the IRDAI (Insurance Regulatory and Development Authority of India). Such training helps the aspiring partner to gain knowledge about the major aspects of the insurance industry.

The topics that are generally included in the training course are as follows:

• Basics and principles of insurance

• Types of insurance (life, health, and general)

• Policy features and benefits

• Claims procedures

• Customer servicing

• Ethics and regulatory guidelines

Knowledge of the above topics helps candidates study and attempt the insurance advisor certification exam with confidence.

Advantages of Becoming a POSP Partner

Becoming a POSP insurance partner offers many advantages, such as

• Performance-based Earning 

The POSP partner's income is commission-based, meaning it depends on the number of products they sell. Thus, based on the extent of their network and their performance, partners have the chance to significantly increase their income in the long run. 

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

• Flexible Working Hours

One of the major advantages of becoming a POSP partner is the flexible working hours. The partner has the option to work either full-time or part-time based on their availability.

• Low Entry Barrier

Compared to other traditional professions, becoming a POSP partner does not require a significant monetary or time investment. This is because the training period is short, and the certification process is simple.

• Ongoing Learning

The insurance industry is a constantly evolving field with new products, regulatory changes, and technological advancements. Becoming a POSP partner also provides an individual with the benefits of continuous learning through refresher courses, community events, seminars, etc.

Conclusion

Having a POSP certificate is an excellent opportunity for those who want to pursue a career in India's growing insurance industry. The requirements for the certificate are minimal, the process is quick, and the certificate is recognised by the IRDAI.

For those who want to pursue a career in the insurance sector or who want an additional source of income, obtaining a POSP certificate is a smart move. By registering with an IRDAI-approved insurer or intermediary, an individual can start their POSP career while gaining access to various insurance companies, digital tools, and the ability to work from anywhere.

Start your POSP journey with InsuranceDekho today!

 

FAQs

1. What is a POSP certification?

POSP stands for Point of Sales Person. The POSP certificate allows an individual to sell insurance policies of different insurance companies. Additionally, they can sell various types of insurance like health, motor, life, travel, etc.  

2. How long does the online POSP certification exam take?

The exam for the POSP certificate takes 30 to 60 minutes to complete. The questions will be multiple-choice to test the candidate's understanding of the training modules.

3. Do I need to pay a fee for the POSP training?

The fees for the POSP training vary from company to company. Some insurers provide the training for free, while others may charge a minimal amount for the study material.

4. Is the POSP certificate valid all over India?

Yes, the POSP certificate is valid throughout India. This allows the partner to grow and develop their client list anywhere they work across the country. 

5. How many hours of training are mandatory for POSP certification?

According to regulatory requirements, new applicants must complete at least 15 hours of training to gain a basic understanding of the insurance industry.

6. What if I do not pass the IRDA POSP exam?

If the applicant fails the exam on the first attempt, they can retake it. This allows the candidate to review the training material again and improve their exam preparation.

7. How can one clear the POSP exam?

To pass the POSP partner exam, the applicant must fulfil all requirements and meet the minimum passing marks.

8. Can a salaried individual apply to become a POSP?

Yes, it is possible for a salaried professional to become a POSP partner, provided their current employment contract does not restrict their other professional activities. This can be done part-time in addition to the main job.