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To enhance the insurance force in India, the Insurance Regulatory and Development Authority of India (IRDAI) will soon introduce “Bima Vahaks” in each gram panchayat, Rakesh Joshi, a member of the insurance regulatory body, said on Thursday.
“Each Gram Panchayat will have a ‘Bima Vahak‘ who would be tasked to sell and service simple parametric bundled insurance products, Bima Vistar, covering health, property, life and personal accident,” Joshi said at the Business Standard BFSI Insight Summit 2022 in Mumbai.
“This bundled product could be bought in units of the sum insured. App-based infrastructure will be put in place to ensure that the policyholder’s journey is seamless,” he added.
Joshi also said that the insurance companies are developing state-level insurance plans with the state governments.
“The insurance companies have adopted a state each and with the help of state governments are looking to develop state-level insurance plans. Much like what has been done in the banks,” he said.
“There’s arguably a case for having differentiated operations which cater to niche sectors, the same way we have NBFCs and microfinance institutes in lending,” Joshi said.
He added that the capital requirements for these may not be as large as for players with national ambitions. This would improve penetration in the areas that do not seem to have much attention from the larger players.
Joshi also said that there is a big protection gap in the country, and it was an “urgent need” for insurance companies and caregivers to collaborate and ensure wider coverage.
“50 per cent of our vehicles are uninsured, and the coverage of property insurance is minuscule. Our MSMEs are not adequately covered. This huge protection gap needs to be bridged,” Joshi said.
“There is a large section of the population which is missing the facilities of financial aid and insurance. About 30 per cent of the eligible population, the ‘missing middle’, are deprived of health insurance solutions,” he added.
To solve this, the companies and caregivers must work in synergy to ensure that a “satisfying experience” is delivered to the policyholders, Joshi said.
According to Joshi, the insurance sector should be so smooth that no patient should be “running after his claims”. All the services and claims must be provided promptly.
“The development of the insurance sector is not complete without reach to all sections to the population…the exclusion of those in the bottom of the pyramid and targeting the upper-income strata would result in development objectives going askew in the long run,” he said.
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