Irdai issues draft Bima Vahaks guidelines to ensure availability of insurance in every corner of India

The Insurance Regulatory and Development Authority of India (Irdai) on Thursday released draft guidelines for ‘Bima Vahaks’, seeking to build a dedicated distribution channel in every gram panchayat to enhance insurance coverage and create awareness.   

According to the guidelines, “Following this objective will improve accessibility and availability of insurance in every nook and corner of the country.”  

Prashant Tripathy, MD & CEO of Max Life Insurance said, "The Bima Vahak initiative holds immense promise for the future and will be a powerful force to enhance insurance inclusion and awareness. With the Bima Vahaks engaging with the diverse needs and aspirations in every Gram Panchayat, insurers can adapt their offerings to provide comprehensive coverage and address emerging financial protection needs."

It defines a corporate Bima Vahak as any legal person registered in accordance with the law and engaged by an insurer under these guidelines. And Individual Bima Vahak means any Individual appointed by an insurer or a corporate Bima Vahak.  

Through this scheme, the regulator wishes to employ resources who can understand and appreciate local needs in every gram panchayat and village, and encourage onboarding of women who can gain trust of locals as Bima Vahaks for distribution and servicing of insurance products.  

Every insurer will be responsible for ensuring KYC and AML compliance concerning the policies sourced through individual Bima Vahaks and corporate Bima Vahaks. Besides, every insurer must put in place systems processes, internal controls and infrastructure to enable a seamless interface with all Bima Vahaks.  

Insurers need to designate a complaint-handling officer in the local office of every gram panchayat, to attend to plaints against Bima Vahaks.   

In the event of the termination of an individual Bima Vahak:  

a) All the insurance policies serviced by the Bima Vahak shall be allotted, to another Bima Vahak, preferably within the same territory.  

b) Every insurer shall make necessary arrangements to ensure uninterrupted service to the policyholders, including in situations where the termination is of a Corporate Bima Vahak, as per the Irdai guidelines.  

Tripathy said, "As we progress towards the ambitious goal of ‘Insurance for All by 2047’, the Bima Vahaks will serve as the backbone of our efforts to extend insurance coverage to every Indian, regardless of their geographical location, thus becoming instrumental in fostering trust and reliability across the community."