How to Become a Health Insurance Agent in India in 2024?
Health insurance is a crucial component of financial planning. It provides essential coverage for medical expenses and ensures access to quality healthcare.
This guide will outline the path to becoming a health insurance agent, detailing the necessary qualifications, skills, and training required to thrive in this field. Additionally, we explain how to become an agent with Digit.
What is Health Insurance?
Health insurance is a type of insurance that safeguards people against financial losses when they are faced with any health or medical condition. It pays for medical and surgical expenses of an insured person when they are ill or injured.
Health insurance in India is a growing market, as there are potentially over 1.3 billion potential beneficiaries out of which only about 20% are currently covered.
Who is a Health Insurance Agent/POSP?
A health insurance agent is someone that works with an insurance company to sell any health-related insurance products. If you’re looking to be one, you would help customers choose the right policy as per their requirements.
With Digit, you can sell customized health insurance plans that ensure quality healthcare for both individuals and families.
Disclaimer - There is no specific category for Agents. If you register for becoming a general Insurance agent, you can sell all general insurance products.
Interesting Facts about Health Insurance Industry in India
As of 2021, about 514 million people across India were covered under health insurance schemes.
70% of the Indian population is estimated to be covered under public health insurance or voluntarily private health insurance.
Approximately 400 million individuals in India still have no access to health insurance.
Why Become a Health Insurance Agent/POSP with Digit?
Learn more about why should you become a health insurance agent, and why should you choose Digit?
As our POSP partner, you will work directly with us. No other middlemen involved. Digit is the fastest growing insurance company India today. We are currently the youngest company to be awarded Asia's General Insurance Company of the Year 2019.
We believe in making insurance simpler, which is why all our documents are so simple that even 15-year olds can understand them.
With technology as our main pillar, we offer you a dedicated support team, and an advanced web & mobile app that allows you to sell 24x7!
We believe in keeping our customers satisfied and have a Facebook rating of 4.8/5, highest for any insurance company.
Our health insurance plans have been designed with the help of ex-director of AIIMs, Dr. M. C. Misra.
We have a high claims settlement ratio for private cars and have settled 93% of all claims we have received for health.
We have a huge network of 5900+ hospitals, where our customers can avail the cashless claims facility. This means that after initiating a claim, they can continue with treatment without a worry!
Our processes are completely online, from issuing a policy to registering a claim. You don’t need to fill any paperwork. All you need is a smartphone/computer and an internet connection. So, you can now work from home or even anywhere else!
Don’t worry, we have your back! All our commissions are settled quickly. Your account will be credited with your commission every 15 days of policy issuance.
How to Become a Health Insurance Agent/POSP?
The easiest way to become an insurance agent is by completing your POSP certification. A POSP (Point of Sales Person) is the name given to an insurance agent who can sell specific insurance products.
To become a POSP, you only need to have the minimum educational qualifications required by the IRDAI and undergo training provided by us. Digit will take care of your training process. Don’t worry!
What are the Requirements and Qualifications to Become a Health Insurance Agent?
Here is what you need to become a health insurance agent:
- You must be over 18 years of age.
- You should have completed education up to at least Class 10
- You need to have a valid Aadhaar Card and PAN Card.
- You will be then be asked to complete compulsory 15-hour training specified by IRDAI.
We promise to help you learn everything you need to know!
Who Can Become a Health Insurance Agent?
The only requirement for becoming an insurance agent is that the candidate must be over 18 years of age and should have completed Class 10.
So, basically anyone who fulfils these criteria can become an insurance agent. This includes college students, stay-at-home spouses, retirees, and businessmen/women
How to Become a Health Insurance Agent/POSP with Digit?
Step 1
Sign up by filling our POSP form given above, fill all the details & upload required documents.
Step 2
Complete your 15-hour training with us.
Step 3
Complete the prescribed examination.
Step 4
Sign the agreement with us and that’s it! You’ll be a certified POSP.
How Much Can You Earn?
Your income as a health insurance agent depends on the number of policies that you sell. A health insurance agent has a huge scope of earning high income. This is because the cost of medical treatments is gradually increasing.
This means that people now have to spend more money to get a medical treatment done and hence, they would like to buy health insurance plans to protect themselves and their families from such high expenditures.
Take a look at the commission structure below to get an idea on how much you can earn as an insurance agent:
| Monthly net premium | Commission & *Reward as % of net premium | Arogya Sanjeevani |
| <25K | 1 year - 25% | 2 years - 23% | 3 years - 22% | 15% |
| >=25k & <50K | 1 year - 28% | 2 years - 26% | 3 years - 25% | 15% |
| >50K & <1L | 1 year - 30% | 2 years - 28% | 3 years - 26% | 15% |
| >=1L | 1 year - 35% | 2 years - 30% | 3 years - 28% | 15% |
Conditions:
- Payment will happen twice a month
- For deciding the month, date of policy issuance will be considered
- Payment for each slab will be considered separately.
- * T&C applicable, subject to maximum limit as prescribed in regulation
- Net premium means premium excluding GST
Why Should I Become a Health Insurance Agent?
One of the primary advantages of being a POSP is the freedom to work as per your convenience. You can now be your own boss!
You can decide whether you’d like to work fulltime or part-time and craft your own working hours accordingly.
At Digit Insurance, we primarily sell insurance policies online. This means, you as a POSP can work from home and use our online processes to sell and issue policies.
To certify as a POSP, one of the main criteria's is to complete the 15-hours compulsory training offered by the IRDAI; which isn’t much to be honest! All it is going to take you is 15 hours of investment to get on board!
Your earnings don’t rely on number of hours worked but on the number of policies you issue. To have a better understanding of the same.
Apart from having a smartphone, a good internet connection, and the required 15-hours training, there’s nothing else you need to become a POSP. So, there’s almost no monetary investment required from your end, whilst the earning potential is high.
FAQs about Who is a Health Insurance Agent/POSP
Can I work as a POS Person from home?
At Digit Insurance, we primarily sell insurance policies online. This means, you as a POSP can work from home and use our online processes to sell and issue policies. Apart from having a smartphone, a good internet connection, and the required 15-hours training, there’s nothing else you need to become a POSP.
How much you can earn as a health insurance agent?
Your income as a health insurance agent depends how many policies that you sell. A health insurance agent has lots of scope of earning high income as because the cost of medical treatments is gradually increasing and more and more people want to buy health insurance plans to protect themselves and their families
What documents do I need?
The documents that you will need to submit at the time of registration include Class 10 or above pass certificate, a copy of your PAN card, Aadhaar Card (front and back), a cancelled cheque (with your name on it) and a photograph.
Do the PAN Card holder and Bank Account holder have to be the same?
Yes, all commissions paid are subject to TDS. TDS is credited to the Income Tax authorities on the basis of your PAN Card.
When I can start selling health insurance?
As soon as you have registered with us, you may begin your training for the POSP exam.
On giving and passing the exam, you will receive an eCertificate. You are then ready to start selling insurance as a POSP agent.
Is it compulsory to undergo any training to become certified as a POS person?
Yes, you will have to complete the training to become a POSP. It will include topics ranging from basics of insurance, policy types, process for issuance and claims, rules and regulations etc.
What support services will I get if I partner with Digit?
All Digit’s partners are assigned a relationship manager who will provide guidance and answer any questions that agents might have on the policies sold over the Digit platform. Agents can also contact the customer support team by emailing us at partner@godigit.com for any assistance.
How can I keep enhancing my knowledge after completing the POSP certification?
We have another extensive training program conducted for our POSPs after certification. They help in enhancing your insurance knowledge and improving your sales and servicing skills. These training programs and events will cover the following:
- Advanced insurance knowledge to handle complicated cases
- Keep abreast with the latest insurance products and how to pitch them
- Fun and interesting ways to learn various selling techniques which help in increasing your sales volumes.
What does a licensed health insurance agent do?
Health insurance agents sell health-related products and insurance to their clients. They typically seek out clients, presenting them with health insurance options that meet their needs.
What skills are expected in an insurance agent?
An insurance agent is expected to have excellent communication, negotiation, and organisational skills and the ability to notice minute details.
What is the threshold limit for the agents to pay TDS?
Any agent earning more than ₹15,000 annually through commissions must pay the TDS.
What is the income tax rate on commission and brokerage?
The TDS rate for commission and brokerage is 5%.
Do agents earn a commission on health insurance?
The insurance agents receive a commission based on the premiums paid by the customers. The agents usually receive a percentage of the premium as a commission.
What is the validity of an insurance agent licence?
The insurance agent licence remains valid for three years from the issue date.
Is obtaining the IRDAI licence mandatory?
Yes. You must have an IRDAI licence before you can apply for the insurance agent post.
Is the TDS refundable?
Yes. The TDS can be claimed when filing for the Income Tax Returns (ITR) for the financial year.