Get to know everything about Insurance Advisory Examination in India

Get to know everything about Insurance Advisory Examination in India

POSP Insurance agent is a professional insurance agent that acts as a mediator between the insurance company and the customer. It bridges the gap and makes one acquainted with several insurance policies available.

Opting for a career as a PoSP insurance agent presents a profitable business opportunity, allowing you to generate income from the convenience of your own home, free from the constraints of office rules and regulations. You can flexibly market insurance at your own pace while earning commissions. To qualify as an insurance PoSP agent, it is essential to clear the insurance advisor examination mandated by IRDAI (Insurance Regulatory and Development Authority of India).

Insurance Advisory Examination in India

Becoming a PoSP (Point of Sale Person) insurance agent and commencing your insurance sales career involves clearing the IC 38 examination. This represents the conventional path to becoming an insurance PoS advisor. Nonetheless, it is important to note that, unlike PoSP agents, an insurance advisor is exclusively authorized to sell insurance from a specific insurance company they are affiliated with as a PoS advisor.

What is the eligibility criteria to become an insurance PoS in India?

  • The minimum age to become a PoS insurance agent in India is 18 years old.
  • You should have passed class 10 if you reside in rural area.
  • You should have passed class 12 if you reside in urban area.

Significance of the Insurance Advisory Exam

Given that, insurance can be a complex subject for many; this exam serves as a means for advisors to acquire the necessary knowledge, making it easier for them to sell insurance plans. The insurance advisory exam assesses the advisor’s understanding of the subject matter, and only those who successfully pass the exam can engage in insurance sales.

Participating in the IRDA-prescribed exam is mandatory for every individual seeking to engage in insurance sales. Without the IRDAI license, an insurance advisor including PoS insurance agent will not possess the legal eligibility to sell insurance. The primary objective of this examination is to ascertain that insurance advisors are adequately qualified and trained to offer insurance products.

Topics Covered in the Insurance Advisory Examination

The initial step involves participating in the training program mandated by IRDAI (Insurance Regulatory and Development Authority of India). During this training, you will gain comprehensive knowledge about various insurance concepts and their significance.

Following are the topics; the training program will cover the following essential topics:

  • The insurance market and its distribution channels.
  • Fundamental principles of insurance.
  • The concept of insurance, its necessity, and its purpose.
  • Key terminology associated with insurance, including risk, peril, hazard, and more.
  • Core principles of insurance.
  • Effective techniques for selling insurance, among other relevant subjects.

With a thorough understanding of these concepts and a comprehensive grasp of the subject matter, you can confidently navigate and successfully pass the insurance advisory examination.

IRDAI Registration Process for IC 38 Examination

To initiate the IRDAI registration process, your first step will be to register with the insurance company through which you intend to conduct business, which includes selling insurance policies. You will need to provide all the necessary information to the insurance company by filling out the registration form and completing the registration fee payment. Once you have submitted the form, the company will proceed to enroll you for the IRDAI examination.

Bottom Line

The PoSP (Point of Sale Person) insurance license has emerged as the preeminent avenue for individuals aspiring to become insurance advisors, and for good reason. This certification is not only a requisite as per the guidelines set forth by IRDAI (Insurance Regulatory and Development Authority of India), but it also ushers in a multitude of advantages.

The introduction of the PoSP license provides greater flexibility and convenience to insurance advisors. Those equipped with PoSP licenses and certifications enjoy the freedom to collaborate with multiple insurance companies and unlock great financial opportunities. This, in turn, enables them to offer a diverse array of insurance policies encompassing health and non-health categories, such as term insurance, endowment life, motor insurance, home insurance, travel insurance, and much more.

FAQs

What is PoSP Certification?

PoSP, or Point of Sale Person Certification, is a credential that authorizes an individual to sell insurance policies from various insurance companies, spanning both health and non-health categories.

Is Training Required for PoSP Certification?

Yes, obtaining PoSP certification necessitates participation in the PoSP Certification examination and successfully passing it.

How you can successfully pass the PoSP Exam?

To pass the PoSP exam, it is imperative to meet all the stipulated criteria and attain the required passing marks in the PoSP certification examination.

How Can You Attain PoSP Certification?

You can attain PoSP certification and establish yourself as a proficient PoSP insurance agent by successfully clearing the PoSP Certification examination. This certification signifies your competence and eligibility to offer insurance solutions to clients across a diverse range of insurance companies and policies.

How much does a POSP insurance advisor earn?

A POSP insurance advisor can earn a commission ranging from around 5% to 30% of the premium paid by the client. This may vary depending upon the insurance company and its policies.

Besides commission on the first year premium of the insurance policy. An insurance advisor also gets renewal commissions. The slabs and rates for renewal commissions depend upon various factors such as the insurance company, type of insurance plan, coverage, and much more.

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