Earn without capitalCommission workChecked Oct 2026
Insurance POSP (Point of Sales Person)
बीमा पीओएसपी
A simpler insurance licence for selling ready-made policies such as two-wheeler, car and basic health cover from your phone. The easiest agency to enter, with small commission per policy.
The short answer
The lowest barrier of any agency work: Class 10, about fifteen hours of training and an in-house test. Vehicle insurance is compulsory and renewed every year, so it sells more easily than life insurance. The commission on each policy is small, so this is a useful side income for someone who already meets many vehicle owners, such as a mechanic, a driving school or a mobile shop, and thin as a sole income.
- Money to start
- None
- Education
- 10th pass
- Vehicle
- Not needed
- Skill
- Learnt on the job
A Point of Sales Person is a category created by the insurance regulator for selling simple, standard policies where the price is worked out by the system and little advice is needed: motor insurance, travel, personal accident and some basic health and life plans. You are attached to one insurer or to an insurance broker or web aggregator, complete their short training and test, and then issue policies through their app. The customer pays the insurer directly and the policy arrives on the spot. You earn a commission on each one. Because most motor policies are renewed yearly, a customer you keep happy comes back every year.
What you need
- Age 18 or above.
- Class 10 pass certificate, Aadhaar, PAN and a bank account.
- A smartphone with data to complete the training and issue policies.
- Fifteen hours of training from the insurer or intermediary, and a pass in their examination.
- A written agreement with that insurer or intermediary.
How the money works
The insurer or intermediary pays you a commission on the premium of each policy issued under your code, usually monthly. The rate depends on the type of policy and on the company you are attached to, so compare two or three before you choose.
- On motor policies the commission is generally paid on the own-damage part of the premium, and little or nothing on the compulsory third-party part. A third-party-only policy for an old bike may earn you very little. Confirm this with your company.
- Health and life products pay more per policy but need more explaining and take longer to sell.
- Renewals count: a book of customers who renew through you every year is the real income.
What people actually take home
We do not estimate earnings ourselves. Each line below is someone else's figure, with who said it and when.
The regulator's rules ask for a minimum of Class 10, an in-house training of fifteen hours and an examination by the insurer or intermediary, after which a certificate is issued and a written agreement signed.
Government or regulatorIRDAI circular of 2017, read Oct 2026 · IRDAI circular on Point of Sales Persons (life)
POSPs may sell only standard products that are largely pre-underwritten, such as motor, travel and personal accident insurance.
Independent studySept 2022 · Cyril Amarchand Mangaldas: Point of Sales Persons as a distribution channel
What we could not find
- Any published commission rate for POSPs that we could confirm. This is why the calculator's rate box is empty.
- Any figure for what POSPs earn in a month.
- The current official list of products a POSP may sell. It has been amended since 2017.
Work out your own number
Put in the rates you are actually offered. The starting values are examples, not what you will get.
Fill in the empty boxes to see the result. We have left them empty because we found no figure we could trust.
Ask the company for its commission chart in writing and enter the rate for the product you will sell most. For motor policies, enter only the part of the premium that commission is paid on.
Commission does not arrive evenly. Expect months with nothing, and count the months before your first sale as unpaid.
Is it legal where you live?
All India
A POSP must be trained, examined and certified by an insurer or a registered intermediary and may sell only the products the regulator allows for this channel. You may not collect premium in your own account, promise benefits that are not in the policy, or share your commission with the customer as a discount.
As of Oct 2026
How to start
- Shortlist two or three insurers, brokers or aggregators that appoint POSPs. Prefer names you can verify on the IRDAI website.
- Ask each for its commission chart and payout date in writing.
- Register in the chosen company's partner app with Class 10 certificate, Aadhaar, PAN and bank details.
- Complete the fifteen hours of training and pass the test.
- Start with vehicle owners you already know, and note every policy's expiry date so you can remind them a month before renewal.
What is good about it
- No fee found, Class 10 is enough, and everything is done on a phone.
- Vehicle insurance is compulsory, so customers already need what you sell.
- Yearly renewals bring repeat income from the same customer.
- Fits well beside a garage, a driving school, a mobile shop or delivery work.
What is hard about it
- Small commission per policy, and very little on third-party-only policies.
- Customers can buy the same policy online in minutes, often cheaper.
- No salary and no fixed income.
- When a claim is delayed or refused, the customer blames you.
Traps to avoid
- Apps or agents that charge a fee for a 'POSP licence'. Check that the company is a registered insurer or intermediary on the IRDAI website.
- Taking the customer's premium in cash or into your own account. Always have them pay the insurer directly and check the policy document together.
- Fake policies. A genuine motor policy can be verified on the insurer's website.
Where this can lead
Questions people ask
What is the difference between a POSP and an insurance agent?+
An agent is licensed after longer training and the IC-38 examination and can sell an insurer's full range, including complex plans. A POSP has shorter in-house training and can sell only simple, standard products such as motor, travel and personal accident cover.
Is there a fee to become a POSP?+
We found no official fee. The training and test are run by the insurer or intermediary that appoints you. Be wary of anyone charging for a licence, and check the company's registration with IRDAI.
Can a POSP sell policies of many insurance companies?+
A POSP attached to one insurer sells that insurer's products. A POSP attached to an insurance broker or web aggregator can offer the products of the insurers that intermediary works with.
Sources
- IRDAI circular on Point of Sales Persons (life), 2017
- Cyril Amarchand Mangaldas: Point of Sales Persons as a distribution channel
- Business Today: how to become a POSP
Pay rates, fees and rules change often and differ by city. Confirm them with the company or the regulator before you commit money or leave other work.
Compare with
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बीमा एजेंट (एलआईसी) · विमा एजंट
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Money to start
Under ₹5,000
Education
10th pass
Vehicle
Not needed
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Money to start
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Education
No minimum
Vehicle
Not needed