IRDAI’s plan to improve insurance awareness and penetration in the hinterland is all set to gain momentum with the insurance regulator issuing draft guidelines for Bima Vahak, a dedicated distribution channel to reach out to every Gram Panchayat.
A core component of its ‘Insurance for all by 2047’ goal, Bima Vahak will be the crucial last-mile connect for insurers in the form of a field force comprising corporate as well individual Bima Vahaks with a focus on onboarding women who can gain the trust of locals for the distribution and servicing of insurance products. From the collection of proposal information, KYC documents and submissions to coordination and support in policy and claims-related servicing, the scope of activities of Bima Vahak will be wide and aimed at improving accessibility and availability of insurance in every nook and corner of the country.
However, the insurer will remain responsible for ensuring KYC and AML compliance with respect to the policies sourced through the Bima Vahaks, according to the draft guidelines that will be open for comments up to June 22.
In addition to the stipulating the dos and don’t for the insurers, the guidelines also recommend the implementation of a Board-approved policy by companies with regard to Bima Vahaks and their terms of appointment, allocation of territory, educational qualifications and training standards and scope of permitted activities. A Bima Vahak will be permitted to sell and service the Bima Vistaar product approved by the Authority and work with only one life insurer, one general insurer and one health insurer and, where permitted, with the Agriculture Insurance Company of India Ltd.
The Bima Vahak scheme will be closely aligned with the Lead Insurers that IRDAI had mooted in every State and Union Territory. Such Lead Insurers will coordinate deployment of resources to ensure maximum coverage of Gram Panchayats.
“The Bima Vahak initiative holds immense promise and will be a powerful force to enhance insurance inclusion and awareness. With the Bima Vahaks engaging with the diverse needs and aspirations in every Gram Panchayat, insurers can adapt their offerings to provide comprehensive coverage and address emerging financial protection needs,” said Prashant Tripathy, MD and CEO of Max Life Insurance.
