In a significant move aimed at transforming India's insurance landscape, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced the 'Insurance Regulatory and Development Authority of India (Bima Vahak) Guidelines, 2023” on 9th October 2023. These guidelines are set to revolutionize insurance distribution in the country by creating a dedicated channel with a focus on enhancing insurance inclusion, especially in rural areas. These shall come into force from the date of launch of Bima Vistaar*(* Bima Vistaar is a comprehensive Insurance product which will be issued in due course)

The Objectives of Bima Vahak

The primary objectives of the Bima Vahak initiative are twofold:

To establish women centric dedicated distribution channel that is focused on enhancing insurance inclusion and creating awareness in every village / Gram Panchayat, thereby, improving accessibility and availability of insurance in every nook and corner of the country.

b) To identify and develop resources locally who understand and appreciate local needs and enjoy the trust and confidence of the local population of their village /Gram Panchayat

Defining Bima Vahak

In these guidelines, a Bima Vahak can be an individual (Individual Bima Vahak) or a legal entity (Corporate Bima Vahak) registered under Indian laws, engaged in providing insurance services as specified.

Engagement and Appointment of Bima Vahak

Insurers have the flexibility to engage Corporate Bima Vahaks or directly appoint Individual Bima Vahaks for soliciting insurance business and facilitating policy and claims servicing. These Bima Vahaks will represent the insurers, and the insurers will be responsible for their actions and conduct.

Scope of Activities

Bima Vahaks can perform various tasks, including filling out proposal forms, ensuring KYC compliance through handheld electronic communication devices, and issuing insurance policies. They also play a crucial role in coordinating and supporting policy and claims-related servicing.

Consumer Protection Measures

To ensure transparency and accountability, the guidelines mandate the issuance of physical identification cards to Individual Bima Vahaks, along with a suitable monitoring framework. Corporate Bima Vahak retail outlets will display information about the services offered, contacts for grievance redressal, and details of designated Complaints Handling Officers. Furthermore, insurers will designate a Complaints Handling Officer for each Gram Panchayat to attend to any complaints promptly.

Conclusion

The introduction of the Bima Vahak Guidelines by IRDAI represents a significant step toward making insurance accessible and inclusive, particularly in rural India. With a strong emphasis on local expertise

and trust, these guidelines aim to bridge the gap between insurance providers and potential policyholders in remote areas. By encouraging the engagement of Bima Vahaks and setting clear standards for their activities, IRDAI is working to ensure the success of this initiative. As we move forward, the Bima Vahak model promises to unlock the vast potential of India's rural markets, ultimately increasing insurance penetration and financial security for countless individuals and families across the nation. These Guidelines have been issued to enable insurers to make necessary arrangements for onboarding and training of Bima Vahaks. The effective date of the guidelines will be notified separately. For more details, please refer to https://irdai.gov.in/document-detail?documentId=3982975