Point-of-sales persons (PoSPs) who are appointed by agents and brokers can now distribute health insurance policies along with life, motor third party and government backed policies.
In its latest circular, IRDAI has allowed sales representatives to sell indemnity health insurance policies having sum assured of up to Rs.5 lakh. Indemnity based health insurance policies pay reinstatement value on hospitalization i.e. healthcare expenses.
IRDAI said, “The insurance regulator has received requests from many insurers to allow indemnity based health insurance products to be sold through Point of Sale (POS). On examination of the request made, the authority has decided to allow individual indemnity based health insurance products to be solicited through PoS channel”, said the circular.
So far, PoSPs were allowed to distribute only plain vanilla life products like term insurance and endowment plans having standardized features.
Last year, IRDAI had allowed insurance companies and insurance intermediaries like agents, brokers and insurance marketing firms to appoint sales representatives, i.e., PoSPs across the country. According to the guidelines, agents can appoint a matriculate as their sales representative to solicit insurance policies anywhere in India.