Listen to this article
IRDAI has issued a consultation paper in which it has proposed introduction of a new distribution channel to tap rural markets - ‘Bima Vahak’.
Bima Vahaks will distribute life and general insurance policies in rural areas at gram panchayat level.
Anyone can become corporate Bima Vahak or individual Bima Vahak to distribute insurance policies in rural areas. Further, corporate Bima Vahak can appoint individual Bima Vahaks as sub distributors in these locations.
Here are some key proposals on Bima Vahak:
- Women should be encouraged to take up distribution business
- Both insurers and corporate Bima Vahak can appoint individual Bima Vahaks
- Bima Vahaks can sell insurance policies, do KYC and facilitate claim servicing
- Individual Bima Vahaks can tie up with one life insurance, one non-life insurance, one standalone health insurance and one agriculture insurance
- Bima Vahaks can sell policies that are available on the Bima Vistaar platform. Bima Vistaar is a digital platform that will enable agents to onboard new clients and make claim request completely online. However, IRDAI will approve policies that can be sold under this platform
- Insurance companies will have to make board approved policy to incentivize Bima Vahaks
- Insurance councils also need to set up terms and conditions, education standards and code of conduct for Bima Vahaks
