Page 13 - The Insurance Times August 2025

IRDAI Cautions Insurance micro-cover under the forthcoming
Bima Vistaar scheme. Attention Subscribers
Brokers Amid Frenzied
Insurers must file granular outreach Please renew your Subscription of The
Stake-Sale Activity plans within 60 days and submit quarterly Insurance Times Journal to receive

The Insurance Regulatory and Develop- progress reports; failure to meet mile- copy of the journal uninterruptedly.
ment Authority of India (IRDAI) has is- stones can attract supervisory action.
sued a stern advisory to insurance bro- IRDAI expects the move to slash protec- You can now pay by GPAY, Phonepe,
kers after noticing a spike in hurried tion gaps in villages, spur digital Paytm, Amazon, ICICI Pay, BHIM UPI
stake-sale proposals and merger talks onboarding via the Bima Sugam plat-
within the broking fraternity. In a recent form, and create thousands of local jobs.
circular, the regulator urged brokers to Industry executives say the target-cov-
seek prior IRDAI approval for any share-
ering roughly half of India's village
transfer or control change, comply
councils-will reshape distribution strat-
strictly with the 2018 Broker Regula-
egy, driving insurers to forge ties with
tions, and maintain the mandated Rs. cooperatives, FPOs and self-help
75-crore net-worth threshold.
groups to deliver affordable life, health
IRDAI expressed concern that some and asset protection in rural markets.
brokers-lured by lofty valuations and
private-equity interest-were circulat- IRDAI Tightens Rural, So-
ing unsolicited deal pitches and signing
term sheets without adequate due dili- cial & Motor TP Targets for
gence or board consent. The regulator Insurers in FY27
warned that any non-compliant trans- The Insurance Regulatory and Develop-
action could face cancellation and ment Authority of India (IRDAI) has is-
monetary penalties, and reminded sued a master circular sharply raising
promoters they remain liable for poli- statutory-obligation targets for every life,
cyholder interests even after exiting.
general and standalone health insurer.
With consolidation accelerating before Rural & social cover: In FY26, each
the proposed hike in capital and sol- company must insure at least 15
vency norms, IRDAI's caution aims to % of lives in 25,000 gram
ensure orderly market conduct, protect panchayats allocated by the regu-
customers, and preserve confidence in lator. By FY27 the mandate
the fast-growing broking sector. doubles to 50,000 panchayats, Sashi Publications Easy Payment
with firms required to protect 25 Modes :-
IRDAI Orders Insurers to % of residents in last year's villages i) UPI ID: SASHIBOOKS@KOTAK
Service 75,000 Gram and 10 % in newly assigned ones. ii) GPAY: 9830171022@okbizaxis
Motor third-party (TP): Insurers iii) PAYTM: 9830171022@paytm
Panchayats by March 2026
holding more than 10 % market iv) NEFT: Current A/C
The Insurance Regulatory and Devel-
share in the TP segment must lift 402120110000327 of 'SASHI
opment Authority of India (IRDAI) has the number of vehicles insured by PUBLICATIONS PRIVATE
issued a landmark directive requiring 5 % in FY26 and 5.5 % in FY27. LIMITED, Bank of India, VVK
every life, general and health insurer Road Branch., Kolkata, India,
to extend doorstep services to at least IRDAI says the tougher thresholds sup-
75,000 gram panchayats by the close port its "Insurance for All by 2047" IFSC Code : BKID0004021
of FY 2025-26. Part of the regulator's roadmap and will accelerate financial v) Credit Card:
"Insurance for All by 2047" roadmap, inclusion in underserved areas. Compa- www.sashipublications.com
the mandate compels insurers to open nies must file detailed rollout plans For any query please call
rural service points, deploy trained within 60 days and submit quarterly 9073791022/9883398055
"Bima Vahak" community agents-pref- progress reports; non-compliance could www.sashipublications.com
erably women-and roll out bundled attract supervisory action.

12 August 2025 The Insurance Times