Bima Vahak Scheme: Ensuring Financial Security through Insurance
The release of draught Bima Vahak guidelines has given the IRDAI`s attempts to increase insurance awareness and penetration in rural regions more traction. Bima Vahak is a specialised distribution route that aspires to connect with every Gramme Panchayat, contributing significantly to the realisation of the goal of "Insurance for all by 2047."
This channel will consist of a field force, including both corporate and individual Bima Vahaks, with a specific focus on recruiting women who can build trust within the local communities for the distribution and servicing of insurance products.
The responsibilities of Bima Vahak will cover a wide range of activities, such as collecting proposal information and KYC documents, managing submissions, coordinating policies, and assisting with claim-related services. The ultimate goal is to improve the accessibility and availability of insurance across the entire country, even in the most remote areas.
Key Points
- The primary objective of Bima Vahak is to establish an insurance distribution channel that focuses on women. This initiative aims to build trust and raise awareness about insurance products in rural regions of India.
- Experts in the industry believe that the Bima Vahak initiative will resemble the concept of banking correspondents in rural banking.
- They see it as a significant step towards enabling the insurance industry to reach the most remote areas.
- They also emphasized the need for insurers to collaborate with state governments and adopt a cooperative approach to tap into the market of underinsured and uninsured individuals.
- To enhance insurance accessibility, insurance companies have taken the approach of partnering with individual states.
- In collaboration with state governments, they are working towards developing insurance plans at the state level, similar to what has been done in the banking sector.
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