Everything You Need to Know About POS Insurance in India

Introduction 

The Indian insurance sector has witnessed a massive digital and regulatory transformation in recent years. Among these developments, POS Insurance (Point of Sale Insurance) has emerged as one of the most impactful innovations, making the insurance process simpler, faster, and more accessible for both customers and sellers.

Whether you are an aspiring insurance agent, a business professional, or simply someone interested in understanding how POS Insurance works, this detailed guide will walk you through everything you need to know about POS Insurance in India—its meaning, benefits, eligibility, and future prospects.

What Is POS Insurance?

POS Insurance, also known as Point of Sale Insurance, refers to an initiative launched by the Insurance Regulatory and Development Authority of India (IRDAI) to simplify the distribution of insurance products. Under this model, individuals can become POSPs (Point of Sales Persons) who are authorized to sell specific insurance products with minimal training and documentation.

Unlike traditional insurance agents, POSPs can sell pre-underwritten and simplified insurance products directly to customers using digital platforms. The primary objective is to make insurance more accessible, reduce paperwork, and empower individuals from various backgrounds to participate in the insurance ecosystem.

How Does POS Insurance Work?

The concept of POS Insurance revolves around convenience and compliance. Here’s how it works:

1. Registration and Certification:
   Individuals interested in selling insurance must register as a POSP through an insurance company or intermediary. After completing a short IRDAI-approved training (usually 15 hours), they receive certification.

2. Selling Simplified Products:
   A POSP can sell pre-approved and easy-to-understand insurance products such as health, motor, travel, and term insurance. These products have predefined terms and conditions, minimizing the risk of mis-selling.

3. Digital Sales Process:
   The POS system is fully digital. POSPs can generate quotes, issue policies, and manage customer data through online platforms—ensuring faster service and transparency.

4. Earnings Through Commission:
   POSPs earn a commission on every policy sold. Since renewals are a consistent source of income, it provides long-term earning potential.

Types of Insurance Products Sold Under POS

The IRDAI allows POSPs to sell simplified versions of various insurance products, including:

• Health Insurance: Standard health plans with basic coverage and pre-set benefits.

• Motor Insurance: Comprehensive and third-party motor policies for cars and two-wheelers.

• Travel Insurance: Short-term travel plans covering medical emergencies and trip cancellations.

• Term Life Insurance: Basic life protection plans with easy eligibility and documentation.

• Personal Accident Insurance: Protection against accidental injuries or death.

These products are designed to ensure simplicity, affordability, and accessibility for the general public.

Eligibility to Become a POSP (Point of Sales Person)

To become a POSP in India, an individual must meet the following eligibility requirements:

1. Age: Minimum 18 years.

2. Education: Must have completed at least the 10th standard.

3. Documentation: Must provide identity proof, address proof, and educational certificates.

4. Training: Completion of IRDAI-approved training (typically 15 hours).

5. Certification: Must pass the insurer’s internal evaluation to receive a POSP code.

Once certified, you can begin selling insurance products through authorized platforms.

Benefits of POS Insurance

1. Simplified Process

POS Insurance eliminates complex paperwork and lengthy approval procedures. Policies can be issued digitally within minutes.

2. Low Entry Barrier

You don’t need a college degree or prior experience to become a POSP. The 15-hour training makes it accessible to anyone looking for an additional income source.

3. Transparency and Compliance

All sales are recorded digitally, ensuring complete transparency and reducing the risk of mis-selling.

4. Flexibility and Convenience

POSPs can work from anywhere—home, office, or on the go—using smartphones or laptops.

5. Attractive Earnings

Each policy sold brings in a commission, and renewals generate recurring income, providing financial stability.

6. Expanding Market Reach

POS Insurance allows insurers to reach rural and semi-urban areas efficiently, helping more people access insurance coverage.

Steps to Become a POSP Insurance Agent

If you want to become a POSP insurance agent in India, here’s the step-by-step process:

1. Choose an Insurance Company or Intermediary:
   Partner with a reputed insurer like Square Insurance posp that offers POSP opportunities and digital platforms.

2. Complete Training:
   Undergo IRDAI-approved training to understand insurance basics, customer needs, and regulatory compliance.

3. Get Certified:
   Pass the assessment and obtain your POSP certification and login credentials.

4. Start Selling Policies:
   Once certified, you can sell approved insurance products through the company’s digital platform.

5. Earn Commissions:
   Get paid for every policy sold and renewed through your portal.

This process empowers individuals to start their insurance career with minimal investment and flexible working conditions.

The Future of POS Insurance in India

The rise of POS Insurance aligns with India’s broader push toward financial inclusion and digital transformation. As consumers increasingly prefer quick, paperless transactions, POSP agents play a crucial role in bridging the gap between insurance providers and policyholders.

Emerging technologies such as artificial intelligence, data analytics, and online onboarding are further simplifying the POSP model, making it more efficient and user-friendly. The government’s focus on expanding insurance penetration will also create more opportunities for POS agents across the country.

In 2025 and beyond, POS Insurance is expected to remain one of the most accessible and promising segments in the insurance industry.

Conclusion

POS Insurance in India is revolutionizing how insurance is sold and serviced. It provides an excellent opportunity for individuals to start a career in insurance with minimal barriers while helping millions of people access essential protection plans. With digital platforms, simplified processes, and continuous demand, the future of POS Insurance looks bright and promising.