BIMA VAHAK - ECONOMY
News: Insurance Regulatory Development Authority of India eyes insurance push
in rural areas with ‘Bima Vahak’
What is in the news?
● The
IRDAI has issued draft guidelines for Bima Vahak, a dedicated distribution
channel to reach out to every Gram Panchayat to increase insurance penetration.
KEY TAKEAWAYS FROM THE NEWS:
● These
guidelines were to improve insurance awareness and penetration in the
hinterland.
● A
core component of its ‘Insurance for all
by 2047’ goal, Bima Vahak will be the crucial last-mile connection for
insurers in the form of a field force.
● This field force
comprises corporate as well individual Bima Vahaks, primarily women, who can
gain the trust of locals for the distribution and servicing of insurance
products.
● However,
insurers will remain responsible for ensuring KYC and AML compliance with
respect to the policies sourced through the Bima Vahaks, according to the draft
guidelines.
● Bima
Vahak holds immense promise and will be a powerful force to enhance insurance inclusion.
● With
the Bima Vahaks engaging with the diverse needs in every Gram Panchayat,
insurers can adapt their offerings to provide comprehensive coverage and
address financial protection needs.
Objectives:
● It
focuses on onboarding women as Bima Vahaks, as they can gain the trust of
locals and facilitate insurance penetration in various communities.
● By
engaging with the local population, Bima Vahaks aim to enhance accessibility
and awareness of insurance in every nook and corner of the country.
Insurance Regulatory Development Authority of India:
● IRDAI,
founded in 1999, is a regulatory
body created with the aim of protecting the interests of insurance customers.
● It
is a statutory body under the Insurance
Regulatory Development Authority Act
1999 and is under the jurisdiction of the Ministry of Finance.
● It
regulates and sees to the development of the insurance industry while
monitoring insurance-related activities.
● The
powers and functions of the Authority are laid down in the IRDAI Act, 1999 and
Insurance Act, 1938.