Irdai to deploy Bima Vahak in every Gram Panchayat before end of 2024
Mumbai, Oct 9, 2023
The objective of Bima Vahak continues to be a women-centric, dedicated distribution channel that will ensure accessibility and availability of insurance in every nook and corner of the country
Insurance Regulatory and Development Authority of India (IRDAI) to deploy Bima Vahaks in every Gram Panchayat before 31 December 2024, said the regulator in a circular on Monday.
"As per the guidelines, every insurer shall endeavour to engage individual Bima Vahaks and/or corporate Bima Vahaks with the focus to progressively achieve coverage of every Gram Panchayat. Bima Vahaks shall be deployed in each Gram Panchayat before 31 December 2024," stated the release.
IRDAI on Monday released the guidelines for 'Bima Vahaks (BV)', with minor changes from the framework released in May 2023. As per the new guidelines, there is no restriction on the number of insurers a Bima Vahak is allowed to work with. IRDAI has removed the following clause, which appeared in the previous release: "work with only one life insurer, one general insurer and one health insurer and additionally where permitted by the Authority, with the Agriculture Insurance Company of India Ltd."
Meanwhile, the objective of Bima Vahak continues to be a women-centric, dedicated distribution channel that will ensure accessibility and availability of insurance in every nook and corner of the country.
The guidelines have corporate and individual Bima Vahaks for the distribution channel. A Bima Vahak would be legal persons registered in accordance with the respective laws and engaged by an insurer. An individual Bima Vahak could be any individual appointed by an insurer or appointed by a corporate Bima Vahak.
The Bima Vahaks, both corporate and individual, will be authorised to undertake activities like the collection of proposal information and know-your-customer (KYC) documents and coordinate claims-related services.
As per the draft, every insurer would have to make available optional modes for payment of premiums by prospects or policyholders. Further, Bima Vahaks are expected to be encouraged to adopt electronic payment processes facilitated by the insurers to enable direct remittance of premiums, the release added.
[The Business Standard]
