How to Become a POSP Insurance Agent in India — Step by Step
6 min read · June 2026 · By InGrowIQ Team
The POSP (Point of Salesperson) model was introduced by IRDAI in 2015 to make it easier for individuals to sell insurance products without the full licensing requirements of a traditional agent. Today, it is one of the fastest growing career options in the Indian insurance industry.
If you want to earn commission by selling motor, health, and term insurance — without the lengthy process of becoming a full LIC agent — POSP is the right path. Here is everything you need to know.
What is a POSP agent?
A POSP (Point of Salesperson) is an individual certified by IRDAI to sell specific categories of insurance products on behalf of an insurance company or a licensed broker. Unlike traditional agents who represent one insurer, POSPs can sell products from multiple insurers through a single registered broker or aggregator.
Products a POSP can sell:
Eligibility requirements
Step-by-step process to become a POSP
Choose your broker or insurer
You must register through a licensed broker or directly with an insurer. Popular options include PolicyBazaar, Coverfox, Digit Insurance, HDFC ERGO, and others. Compare their commission rates, training quality, and support before choosing.
Submit documents
Upload your Aadhaar, PAN, bank details, and photo to their online portal. Verification typically takes 2–3 business days.
Complete 15-hour training
All brokers offer free online training modules covering insurance basics, product knowledge, compliance rules, and sales ethics. Most agents complete this in 2–3 days at their own pace.
Pass the certification exam
The exam is taken online and is multiple choice. Most brokers require a passing score of 50–60%. You can retake if you fail. Typical pass rate is above 85%.
Receive your POSP certificate
Once certified, you receive your unique POSP code. You can now legally sell the approved products and earn commission on every policy issued.
How much does a POSP agent earn?
| Product | Typical Commission | Example |
|---|---|---|
| Motor (Two-wheeler) | 10–15% | ₹5,000 premium → ₹500–750/policy |
| Motor (Four-wheeler) | 8–12% | ₹15,000 premium → ₹1,200–1,800/policy |
| Health Insurance | 15–20% | ₹20,000 premium → ₹3,000–4,000/policy |
| Term Life | 30–40% | ₹12,000 premium → ₹3,600–4,800 first year |
| Personal Accident | 10–15% | ₹2,000 premium → ₹200–300/policy |
A POSP agent selling 20–30 motor policies and 5–10 health policies per month can comfortably earn ₹15,000–40,000 per month in commission, with income growing as their customer base builds.
POSP vs Traditional LIC Agent — which is better?
| Factor | POSP | LIC Agent |
|---|---|---|
| Training required | 15 hours | 100+ hours |
| Exam difficulty | Easy (online) | Moderate (IRDA exam) |
| Products | Multiple insurers | LIC only |
| Motor insurance | Yes | No |
| Commission (life) | Lower | Higher (25–35%) |
| Income potential | Moderate–High | Very High (long term) |
Many successful agents start as POSP and later get their full IRDA licence to add LIC products to their portfolio.
Manage all your POSP policies in one place
InGrowIQ helps POSP agents track policies across all insurers, send renewal reminders, and manage customer relationships from one app.
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