Point-of-sales persons (PoSPs) who are appointed by agents and brokers can now distribute micro insurance policies along with health insurance policies, motor third party and government backed policies.
In its latest circular, IRDAI has allowed sales representatives to sell micro insurance policies of life and non-life insurers. Micro insurance schemes are designed for the lower income population. These policies aim to cover risk of families from illness, injury or death. As the coverage value is lower than a normal insurance plan, the insured people pay smaller premiums.
IRDAI said, “It is observed that advantages such as higher insurance penetration, lower prices, increased choice to customers, etc which would otherwise accrue to the policyholder by making micro-insurance products available through POS channel is being lost,”said the circular.
So far, PoSPs were allowed to distribute only plain vanilla life products like term insurance, endowment plans having standardized features, indemnity based health insurance policies, motor third party and government backed policies.
In 2016, 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.