Who is Point of Sale/POS/Agent in the Insurance Ecosystem

As per IRDAI circular IRDA/ Int/ GDL /ORD/ 183 /10/2015, Dated 26th October 2015, The Authority has observed that there are number of persons who are involved in undertaking simple and routine activities pertaining to solicitations and marketing’s of Insurance policies. For e.g. bulk of products in motor insurance, travel insurance, personal accident insurance, etc. require very little underwriting. These happen to be largely pre underwritten products wherein based on the information provided by the prospect, the insurance policy is automatically generated by the system.

Point of Sales Person

POS “Point of Sales Person” or Insurance Agent means an individual who possess the minimum qualification, has undergone training and passed the examination specified in the IRDAI guideline.

Every POS is identified by the respectively owned Aadhaar Card Number or PAN card number.

The POS should be at least 10th pass-out.

The Training Module is available on National Institute of Electronic and Information Technology website as approved by Authority.

POS shall be sponsored to NIELIT, by the Insurance company or the Insurance intermediary who is sponsoring the individual.

On successfully passing the examination, the individual will be issued a letter by NIELIT certifying him/her to be a “Point of Sales Person”

Products Solicited and marketed by “Point of sales Person”
  • The “Point of sales Person” can sell only the following pre-underwritten products:-
    • Motor comprehensive Insurance package policy for Two-Wheeler, private car and commercial vehicles.
    • Third Party Liability policy for Two-Wheeler, private car and commercial vehicles.
    • Personal Accident Policy
    • Travel Insurance
    • Home Insurance
    • Health Insurance
    • Any other Policy specifically approved by the Authority
  • Every policy sold through the “Point of sales Person” shall be separately identified and pre-fixed by the name POS- Name of the Product.
  • Tagging of Proposal form and Insurance Policy to Point of Sales Person.
    • The Insurance company shall be responsible to record the Aadhar Card Number or PAN card of the POS in the proposal form and insurance policy. The insurance company shall be responsible for the conduct of the POS representing him.
    • The IRDAI (Protection of Policyholder's Interest) Regulations, 2017, under the matters to be stated in life, general and health insurance policy, makes it mandatory to give the details of the person involved in the sales process.
  • As per the IRDAI circular IRDAI/ Int CIR/ PSP/160/09/18 dated 25th September, 2018 the Limit of Sum Insured for general insurance including health insurance marketed by POS are set.