The Insurance Regulatory and Development Authority of India (IRDAI) has taken a revolutionary decision by allowing a new type of distributor - a point of sale (PoS) person - to widen the horizons of the insurance market. PoS persons would be allowed to sell health insurance and non-life insurance products that do not require extensive underwriting or are pre-underwritten, and the system can automatically generate the policy with the information provided by the customer.
The minimum qualification for PoS is class 10 pass. Insurers or insurance agents, corporate agents, and insurance brokers can engage the services of such individuals. This innovative model would save time and resources required in training an agent, as the person is entitled to sell those products that customers already know. It also assures distribution at lower cost.
According to Sanjay Datta, Chief, Underwriting and Claims, ICICI Lombard General Insurance, "Hiring PoS persons will not be very capital intensive. Therefore, the industry will be able to increase insurance penetration in a cost effective manner."
Aadhaar or PAN Card numbers can be used to identify the PoS persons and the policies sold by them would feature these numbers too. IRDAI reserves all rights regarding the type of products allowed to be sold by PoS persons. However, insurers or intermediaries who engage these PoS will be penalised in case of any misconduct by the PoS.