IRDAI has issued a master circular in which it has clarified that point of sales representatives (PoSPs) can solicit term insurance, non-linked traditional policies like money back and endowment, health insurance, immediate annuities and micro insurance products. Simply put, sales representatives can solicit all policies other than market-linked products like ULIPs.
So far, PoSPs could distribute only plain vanilla life products plans having standardized features, indemnity based health insurance policies, motor third party and government backed policies.
IRDAI has now clarified that PoSPs can collect premium from prospective clients. Insurers have to issue policies solicited through sales representatives within three working days. In case of non-acceptance of policies, insurers will have to refund the premium amount within seven days from the date of the decision.
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.
Policy features solicited by point of sales representatives:
Pure term
Minimum and maximum entry age limit: 18 to 65 years
Policy term: Minimum 5 years
Sum assured: No limit but it should be in the multiples of Rs.50000.
Non-linked traditional policies
Maximum age at maturity: Up to 65 years
Policy term: Minimum 5 years and maximum 20 years
Sum assured: Up to Rs.10 lakh
Immediate annuity
Entry age: Minimum 40 years and maximum 70 years
Mode of premium: Single premium only
Death benefit: Return of purchase price
Health policy
Age at entry: minimum 90 days
Sum assured: Maximum Rs.15 lakh under individual and Rs.20 lakh under family floater