POSP (Point of Sale Person)

A Point of Sale Person (POSP) is an individual licensed by IRDAI to sell a defined, simple set of insurance products through an insurer or an intermediary (corporate agent, broker, or web aggregator), under a lighter regulatory framework than that applicable to a full insurance agent or broker. The POSP licence was introduced by IRDAI in 2015 to broaden insurance penetration in India by lowering the entry barrier for distribution, particularly in tier-2 and tier-3 cities and rural areas. The eligibility requirements are deliberately accessible — the candidate must be at least 18 years old, must have passed Class 10 (matriculation), must complete a 15-hour online training course mandated by IRDAI, and must clear a brief assessment.

There is no separate examination fee paid to IRDAI; training partners may charge a nominal fee (₹500 to ₹1,500 typically) covering platform access. Once certified, the POSP can sell only those products that IRDAI has classified as 'pre-underwritten' or 'standardised' — typically motor third-party and own-damage policies, health policies up to a defined sum insured, term plans up to a defined sum assured, personal accident covers, and travel insurance. Complex products such as ULIPs, par endowments with bonus mechanics, and large-cover term plans require the customer to be served by a full agent or broker.

Worked example: Mehul, a 24-year-old in Indore, completes the POSP training and certification through an IRDAI-licensed corporate agent. He attaches as a POSP to that corporate agent and starts selling motor and retail health products to walk-in customers and through his social network. His commission rates are pre-disclosed by the corporate agent and follow IRDAI's commission caps for each product.

Over a year, he writes ₹18 lakh of premium across roughly 250 policies, earning a commission share of ₹1. 4 lakh after the corporate agent's split. A common misconception is that a POSP can sell any insurance product.

They cannot — the product list is restricted to standardised policies, and selling a complex product as a POSP is a regulatory violation that can lead to licence cancellation. Another common misconception is that POSP and insurance agent are the same. They are not — a full agent licence requires a 50-hour training course, a tougher examination, and exclusive attachment to one life and one general insurer; a POSP requires lighter training and can attach only to a corporate agent, broker, or web aggregator.

POSP is the Indian regulatory entry-level for insurance distribution and is a path many sales professionals start with before progressing to a broking or agency licence. Related: corporate-agent, web-aggregator, irdai.