IRDAI issues draft Bima Vahaks guidelines

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IRDAI recently came out with draft guidelines for 'Bima Vahaks (BV)'.

An overview of the news

• It seeks to establish a dedicated distribution channel at the level of Gram Panchayats.

• The guidelines propose Corporate Bima Vahaks and Individual Bima Vahaks for the distribution channel.

• Corporate Bima Vahak would be legal personsregistered in accordance with the respective laws and engaged by an insurer. Individual Bima Vahak could be any individual appointed by an insurer or appointed by a Corporate Bima Vahak.

• The BVs, both corporate and individual, would be authorised to undertake activities like the collection of proposal information, and KYC documents and coordinate claims-related services.

• As per the draft, every insurer will have to provide alternative mode for payment of premium by prospects or policyholders.

Objective of the guidelines

• This initiative aims to improve accessibility and availability of insurance in every nook and corner of the country.

Insurance Regulatory Development Authority of India (IRDAI)

• IRDAI is the regulatory body responsible for overseeing and regulating the insurance industry in India.

• It was set up to promote and regulate the insurance sector in India.

• It was established on April 1, 2000, under the provisions of the Insurance Regulatory and Development Authority Act, 1999. 

• The primary role of the IRDAI is to regulate and promote the insurance industry in India.