How to Become an Insurance Agent in India: A Complete Guide to POSP Insurance Careers


 In recent years, the insurance sector in India has witnessed massive growth, thanks to increasing awareness and digital transformation. One of the most accessible and rewarding career paths in this industry is becoming an insurance agent, especially through the POSP model. If you're wondering how to become an insurance agent or start a career in insurance POSP, this guide will walk you through everything you need to know.

What Is an Insurance Agent?

An insurance agent is a professional who sells insurance policies to individuals and businesses. They help customers choose the right coverage, understand policy details, and file claims when needed. In India, insurance agents can work with life, health, motor, or general insurance.

With the rise of online platforms and simplified processes, becoming an insurance agent has become easier than ever before, particularly through the POSP (Point of Sales Person) model.

What is a POSP Insurance Agent?

A POSP (Point of Sales Person) is a new-age insurance agent authorized to sell simple insurance products such as motor, health, and term life insurance. Introduced by the Insurance Regulatory and Development Authority of India (IRDAI), the POSP model aims to make insurance distribution more accessible by enabling individuals to sell policies with minimal training and compliance.

Key Benefits of Becoming a POSP Insurance Agent:

  • Work from anywhere – No need for a physical office.

  • No fixed working hours – Great for freelancers, homemakers, students, or retirees.

  • Low entry barriers – Only a 10-hour training and an exam required.

  • Good earning potential – Earn commissions on every policy sold.

Eligibility Criteria to Become an Insurance POSP

To become a POSP insurance agent in India, you need to meet the following criteria:

  1. Minimum Age: 18 years

  2. Education: At least Class 10 (10th standard) pass

  3. KYC Documents: PAN card, Aadhaar card, and a bank account

No prior experience or advanced degrees are necessary, making it an ideal career for those seeking flexible and independent work options.

Step-by-Step Guide to Become an Insurance Agent (POSP)

Here’s how you can get started as a POSP insurance agent in just a few simple steps:

1. Choose a Reputed Insurer or Aggregator Platform

To become a POSP, you need to be associated with an IRDAI-approved insurance company or aggregator. Many leading insurers and InsurTech platforms offer easy onboarding for POSPs through their digital portals.

2. Complete POSP Training

You are required to undergo a 10-hour online training program covering basics of insurance, types of products, sales techniques, ethics, and compliance. This training is usually provided by the insurer or platform you register with.

3. Pass the Certification Exam

After completing your training, you must pass an online exam conducted by the insurer as per IRDAI guidelines. This test ensures you understand your responsibilities and the products you’ll be selling.

4. Get Certified and Start Selling

Once you pass the exam, you will receive a POSP certificate and a unique POSP ID, allowing you to legally sell insurance products. You can start selling immediately through your insurer’s portal or mobile app.

What Types of Insurance Can POSP Agents Sell?

POSP agents are permitted to sell simple, pre-underwritten insurance products, such as:

  • Motor Insurance (Car, Two-Wheeler)

  • Health Insurance

  • Personal Accident Insurance

  • Travel Insurance

  • Term Life Insurance

These products are straightforward, require minimal documentation, and do not involve complex underwriting, making them ideal for POSP distribution.

Earnings and Commission Structure

As a POSP insurance agent, you earn a commission for every policy sold. Your income depends on the product, policy amount, and volume of sales. On average, POSPs can earn anywhere from ₹20,000 to ₹50,000 per month, and high-performing agents can make even more.

Some platforms also offer incentives, bonuses, and digital tools to help you grow your business.

Skills Needed to Succeed as a POSP Insurance Agent

While technical knowledge is important, successful POSPs often have:

  • Good communication and interpersonal skills

  • Basic digital literacy (smartphone, email, online forms)

  • Self-motivation and consistency

  • Customer-centric mindset

No need for sales jargon or pressure tactics—genuine advice and trust-building go a long way in this field.

Conclusion

The journey to become an insurance agent in India, especially through the POSP route, is straightforward and rewarding. With flexible work hours, low entry barriers, and substantial earning potential, a career as a POSP insurance agent is an excellent opportunity for anyone looking to build a stable side income or even a full-time profession.

If you're ready to take the first step, start by registering with a trusted insurance provider or aggregator today. Your future in the insurance world could begin in just 10 hours!

Location: 140/141, Bank Colony, Gajsinghpur, Jaipur, Rajasthan 302019, India

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