Become a Motor Insurance Agent
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in spare time
Earn
side income
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training by Digit
How to Become a Motor/Car Insurance Agent in India in 2024?
Becoming a motor insurance agent is a rewarding career path that involves several important steps. It includes a high school diploma or equivalent, completing the required pre-licensing courses and passing your state’s licensing exams. You can easily become a motor insurance agent with Digit, who offers robust support and tools to ensure your success.
Keep reading to discover more about this career and how Digit can help you achieve your goals.
Table of Contents
What is Motor Insurance?
A motor insurance policy can be used to cover a car, a two-wheeler, or a commercial vehicle like an auto or a truck and is compulsory for all vehicles in India. It is also important for people to have it so that they are covered for losses and damages such as in the case of accidents and natural calamities.
There are primarily three types of motor insurance plans – Third Party Motor Insurance Policy, Own Damage Motor Insurance Policy and Comprehensive (or Standard) Motor Insurance Policy.
A Third-Party Motor Insurance is mandatory by the Motor Vehicles Act in India, without which people are liable for a heavy fine. It also protects one's pocket from any losses that could arise if their car were to damage any third-party vehicle, person or property.
The second is the Own Damage Insurance Policy, which is a customized motor insurance policy that is designed to protect oneself and their own vehicle from damages and losses.
Finally, Comprehensive Motor Insurance offers complete protection against both third-party damages and losses, and own damages. This includes protection from unforeseen losses such as accidents, natural calamity, fire or theft.
Who is a Motor Insurance Agent?
A motor insurance agent is someone who works with an insurance company to sell specific motor insurance products. If you were to be a Motor Agent or POSP, you would help customers choose the right motor insurance policy as per their requirements from all motor vehicle-related insurance plans.
With Digit, you can sell Car, Bike (or 2-Wheeler) and Commercial Vehicle policies.
*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 Motor Insurance Industry in India
Why Become a Motor Insurance Agent with Digit?
Learn more about why should you become a motor insurance agent, and why should you choose Digit?
How to Become a Motor Insurance Agent?
The easiest way to become a vehicle insurance agent is by completing 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!
Requirements and Qualifications to Become a Motor Insurance Agent in India
If you want to know how to become a car insurance agent, you must be over 18 years of age, should have completed education up to at least Class 10, and 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 Motor Insurance Agent?
The only requirement to become a motor insurance agent is that the candidate must be over 18 years of age and should have completed Class 10.
This means that anybody who has an aptitude for selling insurance policies can become a POSP Agent. This includes college students, stay-at-home spouses, retirees, and businessmen/women.
How to Become a Motor 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 You Can Earn?
Your income as an insurance agent depends on the number of policies that you sell. The more the number of policies that you sell, the greater your income. A motor insurance agent can sell insurance policies for car, bike and commercial vehicles.
This means that you can sell both comprehensive and standalone policies to the customers, for which the commission structure is given below:
Type of policy & vehicle |
Age of the vehicle |
The maximum rate of commission |
Comprehensive policy - Four wheelers and other types of private or commercial vehicles |
1-3 years old |
15% of the own damage premium |
Comprehensive policy - Two-wheelers |
1-3 years old |
17.5% of the own damage premium |
Comprehensive policy - Four wheelers and other types of private or commercial vehicles |
4 years and above |
15% of own damage premium + 2.5% of third party premium |
Comprehensive policy - Two-wheelers |
4 years and above |
17.5% of own damage premium + 2.5% of third party premium |
Standalone Third-party liability policy - All types of vehicles |
Any age |
2.5% of the premium |