How to Get a PoSP Insurance Code in India (Step-by-Step Guide)

There is an enormous growth in India’s insurance sector owing to increased realisation among people about the significance of securing oneself financially. As awareness about health insurance, motor insurance, life insurance, and commercial insurance is rising, it necessitates manpower for managing such types of insurance. This has offered chances for those aspiring to be insurance advisors under the PoSP technique to earn great profits.

Let’s understand how to get an insurance agent code authorization in India in detail. Know the qualifications, procedure for registration, advantages, PoSP code checking online process, and the importance of signing up.

What is a PoSP Insurance Code?

Point of Sale Persons will get a unique identification code from their insurance company once all the standards have been met. This code is called the PoSP insurance code.  These insurance codes are assigned to such individuals in accordance with the requirements set by IRDAI by insurance companies or brokers. 

Having such a code enables one to be allowed to sell pre-approved insurance products in India. An insurance code is proof that a PoSP has been given the authority to provide customer advice on the sale of certain insurance policies. One is not qualified to engage in the sale of insurance products without having an insurance code.

IRDAI introduced the concept of PoSPs to facilitate insurance sales and increase insurance coverage in the country. It provides one with access to insurance without any entry barriers.

Once you have entered the PoSP code, you will be able to sell several insurance plans, including:

• Health insurance
• Automobile insurance
• Life insurance
• Travel insurance
• Personal accident insurance

Read More: How to become a PoSP agent?

PoSP Code vs Traditional Agent Code

Many individuals confuse the PoSP code with the insurance agent’s license. The two roles promote insurance transactions, but there are huge disparities regarding training, offered products, and freedom of action.

This model is perfect for those who want to earn an extra income without undergoing lengthy licensing processes.

Eligibility Criteria to Get a PoSP Code

People need to fulfill certain conditions laid down by IRDAI in order to apply for PoSP codes. The following are the requirements:

Minimum Eligibility Requirements

• The applicant needs to be 18 years of age.
• An SSLC certificate is the minimum qualification required.
• The applicant needs to reside in India.
• Documents to be submitted will be KYC compliant.
• Previous experience in the field of insurance is not required.
• A single individual cannot hold more than one PoSP code at any point in time.

Due to this simplified eligibility process, the PoSP concept can be availed by a lot of individuals, including:

• Students
• Homemakers
• Retired people
• Freelancers
• Operating a small business
• Regular working people who want to earn some additional money

Moreover, the Indian government is making efforts towards amending the laws on insurance in such a way that PoSPs could deal with more than three insurance companies in the future. This would facilitate the procurement of goods by the consumers as well as provide more opportunities for the insurance agents to earn money.

If you want to understand the growing relevance of this role, read about the importance of the POSP insurance agent.

Documents Required to Get a PoSP Insurance Code

In PoSP Registration, the most crucial process is the filing of the relevant documents. Any delay in code approval can occur due to a missing.

The following are some of the required documents:

• Aadhar Card
• PAN Card
• Passport-sized photograph
• Class 10 mark sheet
• Details of Bank Account
• Linked Aadhar and Mobile Number
• Email ID
• Proof of residence

Further, there are certain requirements that an agent or an insurance company may ask, such as:

• Check Canceled
• Digitally Signed Document
• GST Information (if you have business transactions worth more than a certain limit).

It is always recommended to file all of the above-mentioned documents correctly and on time to avoid any issues at the time of registration.

Steps to Get Your PoSP Insurance Code

Understanding how to get insurance agent code approval is important for anyone planning to start their insurance advisor journey. Below is the complete step-by-step process.

Step 1: Select an IRDAI-Approved Insurance Agent or Insurer Platform

The first step is to select a preferred insurance agent or insurer platform. In most cases, the agent recommends the use of a platform. The quality of support, commission structures, training, and performance varies greatly according to the platform of your choice.

Step 2: Complete Registration

After choosing the platform, fill out the online registration form with basic facts like:

• Full name
• Mobile number
• Email address
• PAN details
• Aadhaar data

The details should match your KYC documents. Most digital platforms register users in minutes.

Registration on any digital platform will not take more than a few minutes to complete.

Step 3: Upload and Verify Documents

Once registration is completed, upload all the required documents to get it verified. These include:

• Identity proof
• Academic qualifications
• Address proof
• PAN verification
• Bank details

All wrong Spellings, DOB, or PAN numbers may result in the activation of the Insurance Code getting delayed.

Step 4: Complete PoSP Training

Pre-code generation training for PoSP is mandatory according to IRDAI. Training includes:

• Basic insurance concepts
• Types of insurance goods
• Managed policies
• Guidelines for customer advisory
• Sales ethics
• Assistance in claim processing

Almost all software platforms provide training programs online. A traditional insurance agent license takes more time than training. Depending upon the product category and insurer guidelines, IC-38 IRDAI Exam may be required.

Check the IRDAI Portal Link here: Link

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Step 5: Clearing the Test

The individual needs to clear the examination post-training.

The test evaluates understanding in:

• Insurance terminologies
• Customer services
• Regulatory compliance
• Suitability of products

With proper completion of training programs, clearing the test becomes effortless.

Step 6: Obtain PoSP Insurance Code

If you have completed the training, evaluation, and documentation processes successfully, then your POSP insurance code will be created. Most online portals release codes promptly, although there are differences between insurers' and brokers' systems.

Once you receive the code, you will be able to:

• Sales of Insurance 
• Client assistance
• Commission-based digital marketing 
• Business online monitoring 

How to Check Your PoSP Code Online

As soon as professionals join their account, they look for "PoSP code verification" or "PoSP code check online." In addition, there is the IRDAI portal, where customers and providers are able to verify PoSP data. 

• Step 1: Go to the official IRDAI Agent Locator website. 

It is necessary to visit the official website called IRDAI Agent Locator. It is the only right way to verify whether the insurance agent is authorised.

• Step 2: Fill out the required form with your details. To verify your identity, you may fill out any of the following: 
• PAN number
• Mobile number
• Name of the insurance agent
• License number

This way, you can perform the online check for the PoSP code in seconds.

• Step 3: Confirm the registration information: At the end of your search, the portal presents critical information, such as:
• Agent Name
• An authorized broker or insurance
• License status
• Validity period
• Registration information

You must verify that all the information is accurate.

What If Your PoSP Code Is Not Showing?

If your PoSP code isn't found on the portal, you should:

• Wait for the details regarding the confirmation
• Contact your broker or insurance firm.
• Connect with the PBPartners portal help desk.
• Ensure that all documentation is validated, if required.
• Ensuring that the status of training completion is valid.

Sometimes, further processing might be required for a longer period of time.

What Can You Sell with a PoSP Code?

Based on your PoSP code, there could be other products related to insurance offered, which would depend on whether it was the insurance company or the broker partnership.

1. Health Insurance

Currently, among all types of insurance available in India, health insurance remains the fastest-growing one. The role of PoSP advisors can be seen in helping select health insurance plans that will meet family requirements.

2. Motor Insurance

Due to the strength of the market, the sale of motor insurance policies, like renewal of bike and car insurance, falls into the hands of PoSP advisors.

3. Life Insurance

There is also a possibility of selling some categories of life insurance that are intended to simplify the customer acquisition process.

4. Travel Insurance

The demand for travel insurance plans has significantly risen among travelers in India and those traveling internationally.

5. Accident insurance for individuals

These plans protect you financially if an accident leaves you unable to work. By offering a range of insurance plans, managers can make more money and meet the needs of their clients. 

Benefits of Becoming a PoSP

Flexible Working Hours

You get to decide when you want to work. You can work part-time or full-time; it is up to you and what you are available for.

Minimal Educational Requirement for Entry

The PoSP system is really easy to get into. It is different from insurance certification programs because it is simple. This makes the PoSP system perfect for people who are just starting out with insurance certification programs, like the PoSP system.

Additional Opportunities for Earning Income

A large number of insurance advisors usually begin their careers as part-timers before progressing to full-time positions.

For instance:

• Providing health insurance packages for families
• Assisting clients in renewing their auto insurance policies
• Selling life insurance alongside accident insurance
•  
• Digital Enterprise Model

New generation PoSP systems come with solutions that help manage commissions, policy issuance using applications, and a dedicated lead management system.

Growing Insurance Market

The insurance market in India is expected to expand further in the future, creating an ongoing demand for insurance consultants.

Key Takeaway

Becoming an insurance advisor in India requires you to obtain the PoSP code. PoSP has lately become a trend among those who want to join the insurance sector. This is because it requires minimum entry criteria, clear training opportunities, and multiple ways of making money.

PBPartners gives you access through which you can cooperate with different insurance companies and use technology for training purposes.