The PoS (Point of Sales) initiative was introduced by IRDAI, to increase insurance penetration in India. In other words, a PoS agent can sell insurance after receiving a Certificate by IRDAI.
The penetration of insurance in India has been low because there has been a lack of trained professionals who can be employed as agents or distributors. Even for simple products such as motor insurance or travel insurance. Or a more complex insurance solution like ULIP, the mandate is that only a registered distributor can sell policies from a particular insurance provider.
To reach out to more people across the country, the industry needs more Insurance Agents. To achieve that objective, what was needed was a simple certification process. Therefore, to get more Insurance Agents and Distributors on board quickly, the IRDAI allowed for a new type of entry, called the PoS person. These individuals may have a lower qualification and training threshold as compared to other insurance distributors such as agents, brokers and corporate agents. That is why IRDAI has allowed these PoS Insurance agents to sell only basic products, which don’t require a lot of underwriting.
PoS persons can be engaged directly by insurance companies or by other intermediaries such as corporate agents and insurance brokers.
Hence, if you want to get certified as a PoS agent, you need to get yourself registered with an insurance company or broker. Take the requisite training, study, and pass the IRDAI test with a certain minimum percentage.
So if you are looking to earn an extra income or make a career in the insurance industry, you can become a PoS Insurance Agent.