The insurance regulator has allowed general insurers to distribute five more types of policies like personal accident insurance and farmer’s package policy through CSCs.
IRDA has allowed non-life insurance companies to distribute five move types of policies through the recently launched distribution channel called common service centres (CSCs). Now, general insurers can sell personal accident insurance, cattle/livestock insurance, agriculture pump set insurance, farmer’s package policy and fire & allied perils dwellings insurance through this channel.
In a circular, the insurance regulator said, “IRDA is considering various products filed by general insurers after suitable examination under F&U guidelines. It is observed that some of these products are fairy straight forward in design and are suitable to sell through a wide distribution network.”
As of now, general insurers were allowed to distribute only motor third party insurance and legal liability insurance through CSCs.
Earlier this year, IRDA had allowed insurance companies to use the licensed Common Service Centres (CSCs) as a distribution network in rural areas in order to increase insurance penetration in the country. The facility enables both life and non-life insurers to market some categories of retail insurance policies through special purpose vehicle (SPV) network in the rural areas with the help of Rural Authorized Person (RAP) who will act as insurance agents.
Meanwhile, the regulator has capped the commission under such products to 15%. However, IRDA has kept the commission 10% under fire & allied products.
The maximum sum assured under these products is Rs. 2 lakh.