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IRDAI will soon introduce a new distribution channel, ‘Bima Vahak’ to increase penetration of insurance policies in rural India.
Bima Vahaks are expected to distribute life and general insurance policies in rural areas. Most likely, this would be a women centric distribution channel in which individual women will be encouraged to take up insurance distribution business in rural areas.
In fact, the market regulator has constituted a 24-member committee headed by M Devasia, Member, Non Life, IRDAI to give suggestions on:
- Develop constitution of Bima Vahak
- Suggest measures to design affordable policies for rural India that offers comprehensive and adequate coverage to rural population. This new structure is called ‘Bima Vistaar’
- Suggest measures to bring synergies in working and operation of Bima Vahak and Bima Vistaar and Bima Sugam (Digital platform to distribute policies under Bima Vistaar)
In a circular, IRDAI said, “In order to facilitate availability of an affordable, simple but comprehensive cover to the hitherto untapped areas and rural population, it is necessary to understand the needs and requirements in those areas and formulate suitable risk cover and customized distribution channels who appreciate the market dynamics in such areas. Field force in remote areas need to build trust of the local population, be more patient and persuasive to be able to explain the nuances of the need for risk cover. In this context a women centric distribution model emerges as an apt alternative.”
IRDAI further said that latest developments in technology like Artificial Intelligence (AI)/ Machine Learning (ML) can be gainfully utilized by creating a digital platform to reach the last mile.
The committee will submit its recommendation by November 12.