If you’ve started researching how to become an insurance agent in India, you’ve probably noticed two different terms come up constantly: POSP (Point of Sales Person) and IC-38 licensed insurance agent.
These aren’t just two names for the same thing — they’re two distinct, IRDAI-recognised routes into the insurance business, with different training requirements, exams, and the range of products you’re allowed to sell.
In this guide, we’ll walk through both paths clearly, so you can decide which one fits your goals — whether that’s a quick, flexible way to start earning, or building toward a full-fledged insurance advisory career.
Who is an Insurance Agent, and Why Does the Route You Choose Matter?
An insurance agent acts as the link between an insurance company and the customer — explaining policy options, helping with documentation, and earning commission on the policies they help sell.
But not every agent is licensed the same way. The route you choose — POSP or the full IC-38 licensing path — determines how quickly you can start working, how much training you’ll need, and which products you’ll be authorised to sell.
What is a POSP (Point of Sales Person)?
A POSP is a simplified insurance distribution model introduced by IRDAI to expand insurance penetration, especially in rural and semi-urban areas.
POSPs are authorised to sell simple, pre-underwritten insurance products—meaning standard policies with largely fixed terms, conditions, and premiums that are easier to explain and sell without extensive product training.
Key characteristics of the POSP route:
- Generally does not require clearing the IC-38 exam
- Requires a much shorter training module, commonly around 15 hours, followed by a brief assessment
- Faster and more accessible route to start earning commission
- Limited to selling simpler, standardised insurance products rather than the full product range
What is a Full IC-38 Licensed Insurance Agent?
A full insurance agent, licensed through the IC-38 examination, is authorised to sell a much wider range of insurance products, including more complex offerings like Unit Linked Insurance Plans (ULIPs), comprehensive health insurance, and high-value endowment plans.
This is the traditional, more comprehensive route into the profession.
Key characteristics of the full agent route:
- Requires mandatory pre-licensing training, commonly ranging from 15 to 25 hours depending on the insurer or training provider
- Requires clearing the IC-38 exam, conducted online by the Insurance Institute of India on behalf of IRDAI
- Authorises the agent to sell a significantly broader range of insurance products
- Generally viewed as a more rigorous, comprehensive qualification compared to the POSP route
Eligibility Criteria for Both Routes
The eligibility bar is intentionally kept accessible for both paths:
- Minimum age: 18 years
- Minimum education: Class 10 pass
- Residency: Must be an Indian resident
- Sponsorship: Must be sponsored by an IRDAI-recognised insurer or an approved training institute before registering for training or the exam
Notice that neither route requires a finance degree or prior industry experience — this low entry barrier is a big part of why the insurance agent business has become such a popular career and side-business option across India.
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Step-by-Step Process: Becoming a POSP
1. Tie up with an insurer or POSP-enabling platform that offers POSP registration.
2. Complete the prescribed training module, typically around 15 hours, covering insurance basics, IRDAI guidelines, and customer service fundamentals.
3. Clear the brief assessment mandated by IRDAI at the end of the training.
4. Get registered as a POSP with your sponsoring insurer or platform.
5. Start selling pre-underwritten insurance products and earning commission on successful policy sales.
Step-by-Step Process: Becoming a Full IC-38 Licensed Agent
1. Get sponsored by an IRDAI-recognised insurer or approved training institute, since this sponsorship is required before you can register for training or the exam.
2. Complete the mandatory pre-licensing training, commonly 15 to 25 hours (online or offline, depending on the provider), covering insurance principles, legal aspects, regulatory frameworks, and detailed product knowledge.
3. Register for the IC-38 exam through your sponsoring insurer or training institute.
4. Appear for the IC-38 exam at a designated, IRDAI-approved test centre, available in English, Hindi, and several regional languages.
5. Clear the exam and receive your certification, after which your sponsoring insurer processes your formal agent licence.
6. Start selling the full range of authorised insurance products as a licensed insurance agent.
IC-38 Exam Details: What to Expect
Here’s what the actual exam looks like:
- Exam name: IC-38 (conducted by the Insurance Institute of India on behalf of IRDAI)
- Format: 50 multiple-choice questions, 1 mark each
- Duration: 60 minutes
- Passing score: 18 out of 50 (approximately 36%)
- Negative marking: None — so it’s worth attempting every question
- Mode: Online, computer-based, at IRDAI-approved test centres
- Languages: Available in English, Hindi, and several regional languages including Tamil, Telugu, Bengali, Gujarati, Kannada, and Marathi
The syllabus broadly covers insurance fundamentals, IRDAI regulations, legal principles, product types across life, health, and general insurance, documentation, underwriting basics, and claims processes.
Which Route Should You Choose: POSP or Full Agent?
- Choose the POSP route if you want a faster, lower-commitment way to start earning insurance commission, are comfortable focusing on simpler, standardised products, or want to test the waters in the insurance business before committing to more extensive training.
- Choose the full IC-38 agent route if you’re aiming to build a serious, long-term career in insurance advisory, want the ability to sell more complex and higher-value products like ULIPs and comprehensive health plans, or want to eventually build a diversified financial services practice.
Many people actually start as a POSP to build early experience and income, then transition into the full IC-38 licensing route as their confidence and client base grow.
License Validity and Renewal
Once licensed, insurance agents (both POSP and full IC-38 agents) need to keep their certification active through periodic renewal, as prescribed by IRDAI and their sponsoring insurer.
Requirements can include continuing education or refresher training before renewal, so stay in touch with your sponsoring insurer about upcoming renewal timelines to avoid any lapse in your ability to sell.
POSP vs Full Agent: Side-by-Side Comparison
| Basis of Comparison | POSP (Point of Sales Person) | Full IC-38 Licensed Agent |
| Exam Required | Generally not required | IC-38 exam mandatory |
| Training Duration | Commonly ~15 hours | Commonly 15 – 25 hours |
| Product Scope | Simple, pre-underwritten products | Full range, including ULIPs, comprehensive health & endowment plans |
| Time to Start Earning | Faster | Slightly longer due to exam requirement |
| Best Suited For | Quick entry, flexible/part-time work | Long-term advisory career, complex product sales |
Frequently Asked Questions
Is the IC-38 exam compulsory for every insurance agent in India?
No. The IC-38 exam is required for the full insurance agent licensing route, but POSPs generally follow a shorter training and assessment process instead and do not need to clear IC-38.
Can a POSP later become a full IC-38 licensed agent?
Yes, many POSPs transition to the full IC-38 licensing route later in their career, once they’re ready to sell more complex insurance products.
Is there negative marking in the IC-38 exam?
No, there’s no negative marking, so it’s a good strategy to attempt every question rather than leaving any blank.
Do I need a finance background to become an insurance agent in India?
No. Both the POSP and full agent routes only require a Class 10 pass as the minimum educational qualification, with no finance degree or prior experience needed.
Can a POSP sell life insurance products?
In some cases, yes — depending on the specific platform, insurer partnerships, and applicable regulations, a POSP can sell certain life insurance products, though the range is generally narrower than what a full IC-38 licensed agent can offer.