6 facts to note before purchasing an insurance policy from a point of sale person


To facilitate growth in the non-life and health insurance business in the country, the Insurance Regulatory and Development Authority of India (IRDAI) introduced a new type of distribution model called point-of-sales person (PoSP), who are engaged either directly by insurers or by intermediaries such as corporate agents and insurance brokers. Let us understand the key differences of buying a policy from PoSP and insurance brokers in this story.

Type of insurance policies that PoSP and insurance brokers sell

TA Ramalingam, Chief Distribution Officer-Institutional Sales, Bajaj Allianz General Insurance, explained, “PoSP normally sell over-the-counter (OTC) products that are pre-underwritten and approved by IRDAI. These products don’t require any further discussion or explanation with the customer at the time of sale.”

Jyoti Punja, Chief Operating Officer & Customers Officer at Cigna TTK Health Insurance, added: “PoSP usually deals with products such as motor, travel and personal accident insurance as their benefits are simple to explain, stated upfront clearly and are fixed and pre-defined.”

In case of insurance brokers, Ramalingam said, “They deal with mega risk policies mainly from corporates.”