Vehicle insurance is a must in India. As per the provisions stated in the Motor Vehicles Act, 1988, every vehicle which runs on Indian roads should have a valid insurance policy covering it. As such, vehicle owners have to buy vehicle insurance plans to legally drive their vehicles on Indian roads.
As vehicle insurance is mandatory, there is a great opportunity to become a vehicle insurance advisor and earn attractive Vehicle insurance agent commission on the policies that you sell. As a vehicle insurance advisor, you can sell vehicle insurance policies and earn Vehicle insurance agent commission on the premiums that you collect. Since many individuals own a two-wheeler or a car, you would be able to find ready customers to sell vehicle insurance policies.
You can become a vehicle insurance advisor with any insurance company which sells vehicle insurance. To become an advisor, you have to register yourself with a vehicle insurance company, undergo mandatory classroom training, appear for an online examination and clear the examination. Once the examination is cleared, you can become a licensed advisor and sell vehicle insurance policies offered by the company with which you registered.
Becoming a PoSP
Another alternative way to sell vehicle insurance policies is to become a Point of Sale Person (PoSP) . As a PoSP you would become an insurance intermediary and sell vehicle insurance policies. The benefits of becoming a PoSP are as follows –
- You can sell vehicle insurance policies of all leading insurance companies
- You can allow your clients to compare the different vehicle insurance plans offered by leading insurers and then choose a policy
- You can earn attractive car insurance agent commissions on every policy that you sell
- You can get complete online assistance from TurtlemintPro to sell insurance and to boost your career.
To become a PoSP with all you have to do is just follow the below-mentioned steps –
- Register online with TurtlemintPro
- Submit your KYC documents for completing the registration process
- Access online training modules designed by TurtlemintPro and learn the basics of insurance
- Appear for an online examination from the comfort of your home or office
- Clear the examination and get a PoSP certification
Once you become a PoSP you can easily sell vehicle insurance policies and earn commission on every sale.
Types of vehicle insurance policies
When it comes to vehicle insurance, the most popular forms of vehicle insurance plans are car insurance and two-wheeler insurance plans. Another type of categorizing vehicle insurance plans is private vehicle insurance and commercial vehicle insurance plans.
Both Commercial Vehicles and Private Vehicles can be of two types- Third-party liability-only plans and comprehensive plans that are available in the market.
- Third-party liability-only policy
Third-party liability only policy is the mandatory policy as per the rules stated by the Motor Vehicles Act, 1988. This policy covers the third party liability which is incurred when the vehicle causes the following damages –
- Kills a third party
- Physically injures a third party
- Damages third party property
In any of the above-mentioned instances, the vehicle owner faces a financial liability to compensate the third party for the damage caused. The third-party policy covers this financial liability and pays the liability incurred by the vehicle owner.
- Comprehensive policy
Third-party policies cover only third party liabilities. If the vehicle itself suffers any damage, the costs incurred on its repairs are not covered under third party plans. This is where a comprehensive policy comes into the picture. The comprehensive plan covers third-party liabilities as well as damages suffered by the vehicle itself.
Under a comprehensive plan, vehicle damage due to the following contingencies are covered –
- Natural disasters like earthquakes, lightning, landslides, floods, storm, etc.
- Man-made disasters like riots, malicious acts, fire, theft, etc.
- Damages suffered in transporting the vehicle
The damages suffered by the vehicle are covered under the head ‘own damage cover’ and third party liabilities are covered under ‘third party cover’. Comprehensive policies, therefore, have different premiums for ‘own damage cover’ and ‘third party cover’. Both the premiums are added together to arrive at the total premium for the plan.
Commercial vehicle insurance plans
You can also sell commercial vehicle insurance policies. TurtlemintPro facilitates vehicle insurance plans for both Goods Carrying Vehicles (GCVs) and Passenger Carrying Vehicles (PCVs). Thus, TurtlemintPro gives you a wider choice of motor insurance policies which you can add in your kitty to expand your customer base.
Commission under vehicle insurance policies
The vehicle insurance agent commission payable to a vehicle insurance agent depends on the following four factors –
- Type of policy that is sold -Comprehensive plans have higher premium rates due to the scope of coverage that they provide. As such, higher vehicle insurance agent commission can be earned by selling comprehensive insurance policies. Third-party plans, on the other hand, have lower premiums and, therefore, pay lower vehicle insurance agent commission.
- Type of vehicle which is being insured -four-wheelers have a higher value than two-wheelers. As such, premiums for four-wheelers are higher than that of two-wheelers. The car insurance agent commission rate, however, is higher for two-wheeler premiums so that the agent can earn decent commissions by selling two-wheeler policies too.
- Age of the vehicle which is being insured -the age of the vehicle determines the insured value of the vehicle. The insured value affects the premiums and, thus, the vehicle insurance agent commission that you can earn.
- The amount of premium that is collected -the higher the amount of premium that you collect, the higher would be your premium.
Here is the maximum vehicle insurance agent commission that you can earn as a vehicle insurance agent by selling different types of vehicle insurance policies –
|Type of policy||Type of the vehicle||Age of the vehicle||The maximum rate of commission|
|Comprehensive policy||Four wheelers and other types of private vehicles||Any age||15% of the own damage premium|
|Two-wheelers||17.5% of the own damage premium|
|Comprehensive policy||Commercial Vehicles||1-3 years||15% of own damage premium|
|4 years and above||15% of own damage premium
+ 1.5% of third party premium
|Standalone Third-party liability policy||All types of vehicles||Any age||1.75% of the premium|
Now that you know the maximum vehicle insurance agent commission rates, let’s do a calculation of the car insurance agent commission that you can earn as a vehicle insurance agent.
Suppose you sell three policies in a week whose details are as follows –
|Type of policy||
|Policy No.1||Comprehensive car insurance policy (new car)||
Own damage premium – INR 12000
Comprehensive two-wheeler insurance policy (bike aged 4 years)
Own damage premium – INR 3500
Third-party premium (assuming bike’s cubic capacity is between 150 and 350 cc)– INR 1193
Total premium = INR 4693
Standalone third party policy on a car
Third-party premium = INR 3221 (assuming car’s cubic capacity is between 1000 and 1500 cc)
The commission which you can earn would be calculated as follows –
Commission on own damage premium = 15% of 12,000 = INR 1800
Commission on own damage premium = 17.5% of 3500 = INR 612.5
Commission on third party premium = 2.5% of 1193 = 29.80
Total = 642.30
Commission on third party premium = 2.5% of 3221 = 80.50
Total commission earned = INR 2522.80
A career as a vehicle insurance agent is quite rewarding. So, become a vehicle insurance agent and sell vehicle insurance policies to your contacts. The policy is mandatory and so you would be able to find easy customers. You can, therefore, earn attractive vehicle insurance agent commission which would continue if you get the policies renewed on time. As such, the potential for earning is limitless and you can grow your career as a vehicle insurance agent.
Frequently Asked Questions (FAQs)
I joined as a PoSP last year. Ever since I have been selling insurance policies to my clients and have earned handsomely. I didn’t know it would be so easy selling insurance –
The PoSP program is quite easy. It took me just a few days to enrol and become a PoSP. Now, I am a certified insurance advisor and am earning good money by selling insurance –
As a housewife, I was looking to earn money in my free time. TurtlemintPro gave me the perfect solution. Today, I am a housewife and also a PoSP who can sell insurance and earn good commission.
TurtlemintPro enable me sell life and general insurance policies thereby increasing my business volume. I have a lot of products in my kitty and can give my clients the choice of the best products in the market. –