What Is a POSP? IRDAI's Point of Sales Person Explained
15 hours of training, one online test, and you can sell insurance. What the role actually is, and is not.
A POSP (Point of Sales Person) is an IRDAI-recognised insurance seller certified through the regulator's simplest route: 15 hours of training and a short online exam, conducted through an IRDAI-registered insurer or intermediary. A certified POSP can sell pre-approved, standardised insurance products, such as motor, personal accident, travel and simple term or health plans, and earns a commission on every policy sold.
IRDAI introduced the POSP category to widen insurance distribution: simple, pre-defined products do not need a fully licensed agent to explain them, so the entry bar for selling them was lowered. That decision created a genuinely low-barrier way into insurance work, and it is why students, homemakers, shopkeepers and part-timers make up so much of the POSP population.
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The Terms Around POSP, Decoded
- Point of Sales Person (POSP)
- An individual certified to sell point-of-sale insurance products after 15 hours of training and an online qualifying exam. Certified through a sponsor, not directly by IRDAI.
- Point-of-sale (POS) products
- Pre-underwritten, standardised insurance plans with pre-defined benefits that cannot be customised. The only products a POSP may sell.
- Sponsor
- The IRDAI-registered insurer, broker or web-aggregator that onboards you, delivers the training, administers the exam and pays your commissions.
- IRDAI Master Circular on POS Products and Persons
- The regulatory framework the whole arrangement runs under: it defines the training requirement, the exam, the code of conduct and the product boundary.
How Becoming a POSP Works
The path runs entirely through a sponsor. You register with an IRDAI-registered insurer, broker or web-aggregator, submit KYC documents, complete the 15-hour training module online at your own pace, and take the short online qualifying exam your sponsor administers. Pass it, clear background verification, and the POSP certificate follows within a few days. The registration process page walks each step with the documents list.
There is no fee ladder and no upfront investment on your side; the sponsor provides onboarding because it earns when you sell. Earnings are commission per policy, uncapped, with no fixed salary. The career and earnings page covers what that translates to at different levels of effort.
See what the qualifying exam asks. No signup.
What a POSP Is Not
- check_circleNot a full insurance agent. That is the IC-38 licence, with 50 to 75 hours of training and a formal Insurance Institute of India exam.
- check_circleNot an employee of the insurer. A POSP is a certified seller paid by commission, not salary.
- check_circleNot licensed to sell customised or complex products. The shelf is limited to standardised POS plans with pre-defined benefits.
- check_circleNot a lifetime-locked choice. POSPs commonly clear IC-38 later and upgrade to the full agent licence.
Why the Bar Is So Low, in One Sentence
POS products are pre-underwritten with fixed benefits, so there is nothing to customise and less to mis-sell; the 15-hour requirement matches the simplicity of what is being sold.
FAQs
What does POSP mean in insurance?expand_more
POSP stands for Point of Sales Person: an individual certified under IRDAI's framework to sell pre-approved, standardised insurance products after 15 hours of training and a short online exam conducted by an IRDAI-registered insurer or intermediary.
Is POSP a government job?expand_more
No. A POSP is not employed by IRDAI or by the government. You work with an IRDAI-registered insurer or intermediary and earn commission on the policies you sell, with no fixed salary.
Can I work as a POSP part-time or from home?expand_more
Yes. POSP selling is designed for flexible, digital-first work. Students, homemakers and working professionals commonly sell POS policies part-time from home using their sponsor's app or portal.
Does becoming a POSP cost anything?expand_more
There is no upfront investment expected from the candidate. Sponsors typically provide onboarding, training and the exam as part of recruitment, since they earn when you sell.
Next steps
- POSP vs IC-38arrow_forward
- Eligibilityarrow_forward
- Registration Processarrow_forward
- IRDAI POSP Guidearrow_forward
No signup, before you pick a sponsor.