Why some insurance policies are sold through point of sale has a simple answer: they’re built so simple that the seller doesn’t need to judge your risk. Price, terms, and cover are fixed in advance, so a trained non-specialist can explain the product in minutes. That’s what lets insurers put cover where customers already are, instead of waiting for them to find an adviser.
| Feature | Point of Sale Person (POSP) | Insurance Agent |
| Products | Simple, pre-approved, fixed terms | Full range, including tailored plans |
| Training | 15 hours | 25 to 50 hours, depending on source |
| Who tests | Usually the insurer or intermediary | IRDAI-recognised exam |
| Typical cover | Motor, travel, personal accident, plain term, standard health | Anything, including complex needs |
| Regulated under | IRDAI’s 2015 Point of Sale guidelines | Insurance Act, 1938 and agent framework |
What “Pre-Underwritten” Actually Means
Underwriting is the risk assessment that decides whether an insurer takes you on and at what price. A pre-underwritten product has had that done up front, when the product was designed. There’s no individual assessment, no judgment call at the counter.
That’s why the seller needs less training. A POSP isn’t weighing your medical history or crafting a custom structure. They’re explaining a standard product with known features.
It’s also why the model exists at all. IRDAI introduced Point of Sale guidelines to make simple insurance easy to reach at places where customers are most likely to need it, in support of the wider goal of insurance for everyone.
What Gets Sold This Way
Sources differ on exactly how wide the list is, but the core is consistent:
- Motor insurance for private cars and two-wheelers
- Personal accident cover
- Travel insurance
- Home insurance
- Plain term life plans with defined benefits
- Standard health plans such as Arogya Sanjeevani, a standardised indemnity health policy
One 2026 guide says the pre-approved list expanded over time to include comprehensive motor, retail health, term life, endowment, and travel. Others describe a narrower set. Check the sponsor’s list for what a given POSP can actually offer.
Who Becomes a POSP
The entry bar is deliberately low:
- At least 18 years old
- Passed 10th standard, per one guide
- No criminal conviction
- A minimum of 15 hours of IRDAI-approved training
- A certification exam
This isn’t a lesser job. It’s a different one, a narrower role with narrower permissions.
What a POSP Cannot Do
The limits are as important as the permissions:
- Sell complex or interconnected products
- Operate without the approved POS code issued after certification
- Advertise products outside the approved list
- Offer customised advice that needs a detailed needs analysis
If your situation is complicated, such as a large family floater with pre-existing conditions, a business cover, or an investment-linked plan, a POSP isn’t the right person.
Where the Details Don’t Match
Sources conflict on several points, so treat these as things to verify:
- Who runs the exam: some say an IRDAI certification exam with a 40% pass mark, while others say the sponsoring insurer or intermediary tests in-house
- Licensing: one explainer says a POSP holds no IRDAI licence and sells under the sponsor’s licence, while an insurer page describes a “state-level license”
- Agent training: older sources give 25 hours, newer ones 50 hours
- Tie-ups: a POSP can reportedly sell several insurers’ products through one platform, while an individual agent is tied to one life, one general, and one standalone health insurer
The practical way through is simple: ask the person for their certification and sponsor, then confirm both with the insurer or intermediary.
What This Means When You Buy
Point-of-sale products suit a particular kind of buyer. They work well when:
- You know what you want, such as a car policy or a simple term plan
- You value speed and low paperwork
- The product is standard and the price is fixed
They work less well when:
- Your needs don’t fit a template
- You need advice on how much cover you actually need
- You’re comparing complex features like riders, waiting periods, and exclusions
A few checks apply either way:
- Ask who the sponsoring insurer or intermediary is
- Get the policy wording in writing
- Confirm the premium goes to the insurer, not a personal account
- Keep proof of every payment
- Use the free-look period if the product isn’t what you expected
FAQs
Q1. What does POSP stand for in insurance?
A: Point of Sales Person. It’s an individual certified to sell simple, pre-approved insurance products after a minimum 15-hour training and a certification exam, under IRDAI’s 2015 guidelines.
Q2. Can a POSP sell any insurance policy?
A: No. Only simple, pre-underwritten products with fixed terms, such as motor, travel, personal accident, plain term, and standard health plans. Complex or customised products need a full agent or broker.
Q3. How is a POSP different from an insurance agent?
A: A POSP has shorter training and a narrower product list. An agent completes longer training and an IRDAI-recognised exam, and can sell the full range of the insurers they’re tied to.
Q4. Is a policy bought from a POSP less valid?
A: No. The policy is issued by the insurer on the same terms. The difference lies in who sold it and how much advice they were allowed to give.
Q5. Should I buy complex insurance through a POSP?
A: Generally not. POSPs can’t offer detailed needs analysis or sell complex products. For a family floater with conditions, an investment-linked plan, or business cover, use an agent or broker.
