The corporate insurance agent is the representative of an insurance company. He is the face of the company that represents the insurer by promoting its product.
The corporate insurance agent fulfills the needs of the customer by selling the insurance policy. The corporate agent holds a verified registration that the insurance authority issues.
Who can Become a Corporate Agent?
Here are the persons who may become corporate agents.
- A company which is established under the Companies Act, 2013 may act as a corporate agent
- A company which is established and registered under the Limited Liability Partnership Act may also act as a corporate agent
- A cooperative society is also eligible to become a corporate agent if it is registered under the Co-operative Societies Act, of 1912
- A banking company may also become a corporate insurance agent
- A new bank defined under the Banking Companies Act, of 1949 may also act as a corporate insurance agent
- A regional rural bank which is established under the Regional Rural Banks Act, 1976 may work as a corporate agent
- Any person whom the authority recognizes may also work as a corporate insurance agent
Process for Registration
- The eligible entity makes an application From A to the IRDAI. The application is accompanied by a fee of Rs. 10,000 with applicable taxes. The fee is non-refundable. The Account Payee draft shall pay the fee in favour of "The Insurance Regulatory and Development Authority of India" at Hyderabad.
- However, an entity that is registered under another regulatory authority should apply for the no-objective certificate to apply.
- The IRDAI shall contact the applicant regarding the grant of registration if it finds that the application is correct. The applicant has to pay a Fee of Rs. 25,000 with applicable taxes within 15 days from the communication of the grant of registration.
However, the applicant must check the following before applying to the authority.
- The promoter must meet the criteria of IRDAI
- The promoter must have a suitable infrastructure. This includes office, manpower etc.
- The promoter must check that the authority has not rejected the person who is connected with him.
- The principal officer of the applicant must be graduated. The applicant should also check if the principal officer has completed the 50 hours of training session and passed the examination. However, the authority may reduce the training hours if the principal officer is qualified by the Insurance Institute of India.
- The promoter should check that the principal officer has not violated any code of conduct during the last three years.
Other Activities After Grant of Certificate of Registration
Here are the activities that the promoter must perform after granting the registration.
- The promoter must submit the checklist of the principal officer to receive the PO license.
- The promoter must download the CA COR and PO license from the portal.
- The promoter must submit the SP checklist for the SP license. He must also download the SP certificate.
- The promoter must upload the tie-up contract or agreement with the insurance company.
- The promoter must also submit full and half-yearly returns on the portal.
Fee Structure
|
Category of Payment |
Amount Payable (In Rupees) |
|
CA Application processing fee |
10,000 |
|
CA Registration fee |
25,000 |
|
PO Certificate |
500 |
|
SP Certificate |
500 |
Difference Between Corporate and PoSP Insurance Agents
Let us discuss what is PoSP before understanding the difference between corporate the PoSP insurance agents.
PoSP (Point of Selling Person) is a new type of license. The IRDAI introduced this license in 2015 to meet the unique demands of the people. A PoSP may sell different kinds of policies to the buyer. He may work with many insurance companies and sell their policies. A person needs to be at least 18 years old and 10th pass to become a PoSP. One may become a PoSP by attending the training session and clearing the exam.
Let us discuss the difference between the corporate and PoSP insurance agents.
|
Corporate Agent |
PoSP Agent |
|
A corporate insurance agent is a company that represents an insurance company. |
A PoSP is a person who represents more than one insurance company and sells their products. |
|
A corporate agent sells the insurance policies on behalf of the insurance companies. |
A PoSP sells the insurance policies of many insurance companies. |
|
In corporate, a company sells insurance policies. |
In PoSP, the person sells the insurance policy. |
|
A corporate agent should have Rs 50 lakh capital to sell the insurance policy. |
A PoSP does not need any capital to sell the insurance company. |
|
A corporate agent should have a company or entity to sell the insurance policy. |
A PoSP agent may sell the insurance policy from his home. |
|
A corporate agent must have employees. |
An insurance PoS agent does not need any employee. |
|
A corporate agent needs to pay an application fee which is non-refundable. |
A PoSP in insurance does not need to pay any fee to sell the policies. |
|
The corporate agent needs to pay Rs 25 thousand for the renewal of the license. |
An insurance PoS agent does not need to pay any amount for the renewal of a license. |
What Kind of Insurance Do Corporate Insurance Agents Sell?
The corporate insurance agent sells the following kinds of products.
- Life cover
- Health cover
- Travel cover
- Motor cover
Benefits of Becoming a Corporate PoSP Agent
Here are the benefits of becoming a corporate PoSP.
-
Flexibility
A homemaker may also work as an insurance PoSP. She may work from home and become financially independent. Anyone looking for a side hustle job can also work as an insurance PoSP. He/ She does not need to work full-time. He/She can work as per the convenience.
-
Training
The insurance company provides regular training to the PoSP. This helps the PoSP in learning more about the policies. He may easily sell the policy to the buyer after attending the training sessions.
-
Zero Investment
A PoSP does not need to make any investment to receive the license. He only needs to spend his time selling insurance policies.
-
Rewarding career
A PoSP may earn a good reward on the policy he sells. He may earn a fix amount on every policy he sells. A PoSP may also earn a reward on the renewal of every policy.
Conclusion
A PoSP agent may sell different kinds of products to the buyer. He may work with many insurance companies. A PoSP does not need to make any investment to receive the license. He only needs to attend the training session and clear the exam to sell the policies. A corporate agent or its employees may also become a PoSP by attending the training session and clearing the PoSP exam.
FAQs
Q. Who can become a PoSP agent?
A. Here are the people who may become a PoSP agent.
- Home-maker
- Businessmen
- A normal agent
- A corporate agent and its employees
- A retired employee
- A college student
Q. What is PoSP full form in insurance?
A. Point of Selling Person is the PoSP full form in insurance.
Q. What document do I need to become a PoSP?
A. person needs to have the following documents to become a PoSP.
- 10th Class Marksheet
- Adhaar Card
- Bank Account
- PAN Card
Q. Can a normal agent become a PoSP?
A. Yes, a normal agent may also become a PoSP. He needs to attend the 15-hour training session and an exam.
Q. What document do I need to become a PoSP?
A. person needs to have the following documents to become a PoSP.
- 10th Class Marksheet
- Adhaar Card
- Bank Account
- PAN Card
Q. Can a normal agent become a PoSP?
A. Yes, a normal agent may also become a PoSP. He needs to attend the 15-hour training session and an exam.
Q. How can a corporate agent become a PoSP agent?
A. He may become a PoSP by attending the training session and clearing the exam.
Q. What are the services offered by an insurance PoSP agent?
Here are the services that PoSP offers.
- An insurance PoSP agent understands the needs of the client.
- He educates the client and explains the hard topic of the policy.
- He also explains the terms and conditions of the policy to the buyer in easy language.
- He also gives suitable advice to the buyer to select the best policies.
- He helps the client in filing the claim form.
- A PoSP works as an intermediary between the insurance company and the buyer.
Q. How to become an insurance agent?
A. Let us discuss how to become an insurance agent.
- An 18-year-old person may become a PoSP.
- He needs to clear his 10th standard exam.
- He also needs to attend the training session.
- He must clear the exam.
- He may sell the policy after clearing the exam.
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