The Insurance Regulatory and Development Authority of India (IRDAI) Monday issued guidelines on Bima Vahaks, the women-centric, dedicated distribution channel for enhancing insurance inclusion with a focus on rural areas.
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A part of a multi-pronged strategy to achieve its ‘Insurance for All goal’, Bima Vahaks are expected to have a key role in taking Bima Vistaar, or affordable, accessible and comprehensive cover mooted by the regulator, to the target segment.
“These will come into force from the date of launch of Bima Vistaar, a comprehensive insurance product which will be issued in due course,” IRDAI said issuing Bima Vahak guidelines. The guidelines were being issued to enable insurers make necessary arrangements for onboarding and training Bima Vahaks. The effective date will be notified separately, it said.
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The Bima Vahaks – individual as well as corporate – are to be provided with handheld electronic communication devices integrated to the electronic platform of the insurers and sell and service Bima Vistaar and other products specified by the regulator. They will not be allowed to collect any fees or charges from policyholder or prospective policyholder, other than the insurance premium.
IRDAI said the Life Insurance Council and General Insurance Council will jointly be responsible for formulating a common set of operational and conduct standards applicable to Bima Vahaks, including qualifying educational standards, scales of commissions, training needs, standard terms of appointment, maintenance of database and confidentiality of the data and other operational and compliance aspects.
Besides having in place their Board approved policy on Bima Vahaks, in tune with the standards set by the councils, every insurer will have to engage individual Bima Vahaks and or corporate Bima Vahaks with a focus to progressively achieve coverage of every Gram Panchayat. “Bima Vahaks shall be deployed in each Gram Panchayat before 31st December 2024,” the regulator said.
Towards reaching out to the largely untapped but potentially important hinterland of the country, IRDAI had already started appointing lead insurers for States, on the lines of the lead bankers. The scope of work of Bima Vahaks, besides creating awareness of insurance in villages, is likely to range from filling proposal forms, facilitating KYC process for customers, issuance of insurance policies, coordination and support in policy and claims related servicing as well as extending support in claims settlements.