'Insurance For All' By 2047 Has Women At Core Of Distribution
Bima Vahak has the potential of employing around 2.6 lakh rural women across the country.
India's vision of 'Insurance for All' by 2047 is about easing distribution and improving penetration with the inclusion of women and innovative products for rural folk.
On Oct. 9, the Insurance Regulatory and Development Authority of India came out with guidelines around 'Bima Vahak', which is the creation of a women-centric insurance distribution channel with representation at the Gram Panchayat level.
The guidelines will come into force from the date of launch of the 'Bima Vistaar', which will be issued in due course, according to the release.
Irdai Chairperson Debashish Panda had earlier announced three initiatives to achieve the vision of insurance for all:
Bima Sugam—an online platform serving as a one-stop shop for sales, customer service, and claims.
Bima Vahak—a women-centric insurance distribution channel to help insurance products reach the last mile, with each gram panchayat having a 'vahak' to sell and service simple insurance products.
Bima Vistaar—a first-of-its-kind all-in-one affordable insurance product offering life, health, and property cover for rural households with the aim of financial inclusion and social security.
The objective is to establish a women-centric dedicated distribution channel that is focused on enhancing insurance inclusion and creating awareness in every village, improving accessibility and availability of insurance in every nook and corner of the country, according to the latest guidelines on Bima Vahak.
It aims to identify resources locally, or those who understand local needs and enjoy the confidence of the local population. Insurers are expected to appoint a corporate Bima Vahak or directly appoint individual Bima Vahaks.
These vahaks are to sell and service Bima Vistaar and other insurance products specified by the authority using only handheld electronic communication devices that are directly integrated into the electronic platforms of the insurers.
They will not be allowed to collect any fees or charges from the policyholder or prospective policyholder other than the insurance premium.
Both the Life Insurance Council and General Insurance Council will be jointly responsible for establishing a common set of operational and conduct standards—minimum educational standards, scales of commissions, and training requirements applicable to Bima Vahaks. The individual Bima Vahaks will receive physical identification cards and, also, an online electronic ID.
Bima Vahaks will be deployed in each gram panchayat before Dec. 31, 2024. This will be done by the lead life insurer, covering 40% of gram panchayats within their state or union territory, another 40% by the lead general insurer, and 5% and 15% by the lead health insurer and other insurers together, respectively.
This move can be a great way to ensure the financial inclusion of women by employing representatives across gram panchayats in the country.
According to the Ministry of Panchayati Raj, there are currently 665 district panchayats, 6,700 intermediate panchayats, and 2.56 lakh village panchayats in 2022–23. This data is linked to the Census of 2011.
Therefore, Bima Vahak has the potential to employ around 2.6 lakh rural women across the country while ensuring social security and insurance awareness.
