Money & Banking

IRDAI relaxes norms for hiring of point of sales persons by insurers

G Naga Sridhar Hyderabad | Updated on January 12, 2018

The relaxation of norms for point of sales persons has been done on the basis of feedback from insurers and the need for practical ease in their appointment

Hiring of Point of Sales Persons (PSPs) for selling insurance has become easier, thanks to an initiative by the Insurance Regulatory and Development Authority of India (IRDAI).

The Authority has decided to dispense with the condition of training and passing a previously prescribed examination to be conducted by the National Institute of Electronics and Information Technology (NIELIT).

According to the amendments made to the guidelines issued in November 2016 for appointing PSPs, the life insurer or an intermediary proposing to engage them can now impart in-house training for 15 hours to the candidate, which will be followed by an examination.

Apart from issuing a certificate to the candidates who qualify in the exam, they can also engage the successful candidates as PSPs by entering into a written agreement, specifying suitable terms and conditions.

The records of training and examination should be preserved for at least five years from the end of the financial year in which these are conducted, to be inspected by the IRDAI as and when needed.

Impact of the norms

According to an IRDAI official, the new norms will help those who have passed secondary school certificate/ matriculation exams make a living by selling simple and underwritten polices.

Though yet to catch up, PSPs can be deployed in motor insurance, personal accident, travel and home insurance which offer better scope in view of low reach and simple norms, while bringing down the cost of sales for insurers, according to industry experts.

The relaxation of norms for PSPs has been done on the basis of feedback from insurers and the need for practical ease in their appointment, according to an IRDAI circular.

Published on February 14, 2017

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor