- Date : 13/07/2023
- Read: 3 mins
Are you confused about IRDAI's guidelines for the Bima Vahak Program? Read on!
- Bima Vahaks enhances financial security and awareness across India.
- Understanding the Bima Vahak Scheme and IRDAI's objective.
- Features and benefits of the Bima Vahak Program and how it aims to bring accountability.
- Summarising the basic and important guidelines listed by IRDAI for Bima Vahaks.
Bima Vahaks have received draft guidelines from IRDAI, which is a drive pointed toward upgrading financial security and mindfulness across India.
In this article, we will talk about the Bima Vahak Scheme and its role.
What is the Bima Vahak Scheme?
Bima Vahak Program is one of the parts of IRDAI's Protection for All by 2047 objective, which expects to work on the accessibility of protection items throughout India. Bima Vahak is a specialised channel for reaching each Gram Panchayat.
By forming a field force of individual and corporate representatives, it will establish financial security and connection for insurers.
Also Read: IRDAI's New Rules: How They Will Affect Insurance Marketing?
Guidelines of Bima Vahak Scheme
The guidelines lay out a few restrictions.
- Insurance intermediaries like agents or Point of Sale Persons (POSPs) cannot serve as Bima Vahaks and individual Bima Vahaks can't be appointed by another.
- The guidelines also say that Bima Vahaks can't outsource any work.
- To facilitate the servicing of policies and claims, insurers are permitted to employ Corporate Bima Vahaks or directly appoint Individual Bima Vahaks.
- The appointing insurer holds full liability regarding the activities and direction of the Bima Vahaks.
Benefits of the Bima Vahak Scheme
People who get the insurance can tailor their offerings to meet the diverse requirements of every Gram Panchayat because Bima Vahaks will be attending to them.
One of the primary goals is to establish a dedicated women-centric distribution channel. This encourages women to join as Bima Vahaks, who could promote insurance product distribution and service.
The corporate and individual Bima Vahaks would be permitted to coordinate claims-related services and carry out activities like collecting proposal information and KYC documents.
Finally, the Bima Vahak program has great potential and will help upgrade protection consideration and mindfulness.
Additionally, Bima Vahaks will be compensated for their efforts through commissions or remuneration provided by insurers for selling and servicing insurance products as part of the Bima Vahak Scheme.
Features of the Bima Vahak Scheme
Some of the main features of the Bima Vahak Scheme include:
- A Bima Vahak will be allowed to sell and service the Bima Vistaar product approved by the Authority.
- The Bima Vahaks' actions and behaviour are entirely attributable to the hiring insurer.
- The Bima Vahak scheme will be firmly lined up with the lead insurers.
- To ensure that as many Gram Panchayats as possible are covered, these lead insurers will coordinate the use of resources.
- Bring transparency and coordination in the working and tasks of Bima Vahak, Bima Vistaar, and the computerised stage, Bima Sugam.
Also Read: IRDAI Puts Customers First. Lays The Groundwork For Customer-Centric Reforms
The Bima Vahak Scheme will be the spine to guarantee each Indian's fundamental financial security. The guidelines ensure accountability, which is an added benefit.
