Context: The Insurance Regulatory and Development Authority of India (IRDAI) issued guidelines on Bima Vahaks.
Need for Insurance in India
- Missing Middle: 30% of the eligible population constitute the ‘missing middle’ are deprived of the facilities of financial aid and insurance.
- Protection Gaps: There are huge protection gaps that need to be bridged as about 50% of vehicles are uninsured in addition to minuscule coverage of property insurance. Additionally, the MSMEs are also inadequately covered by insurance products.
Bima Trinity will include three components
- Bima Sugam:
- Platform to integrate insurers and distributors on to one platform.
- It will enable easy access under a single roof for insurance companies, agents, brokers, banks and aggregators. It will further enable individuals to buy life, health, motor or property insurance policies online.
- The platform is a centralised database that acts as a one-stop shop for customers, who at a later stage can pursue service requests and settlement of claims through the same portal.
- Bima Vistar: It aims to provide ‘affordable, accessible and comprehensive cover’ in the form of a bundled risk cover for life, health, property and casualties or accidents.
- Bima Vahaks:
- It is a women-centric, dedicated distribution channel to enhance insurance inclusion with a focus on rural areas.
- Each Gram Panchayat would have a ‘Bima Vahak’ who would be tasked to sell and service insurance products.
- It aims at identifying and developing resources locally who understand and appreciate local needs and enjoy the trust and confidence of the local population of their village/gram panchayat.