Page 32 - The Insurance Times July 2025

curement of food grains, fertilizers, seeds, LPG/CNG/Petrol/ two-wheelers, private car and commercial vehicle,
Diesel distributorship, Fair Price Shops (FPS), Business Cor- Health Insurance, Personal accident, Travel insurance,
respondent activities and Common Service Centers. To Agriculture Pump Set Insurance, cattle Insurance and
strengthen the PACS, the Ministry of Co-operation approved Home Insurance.
Computerization of 63000 functional PACS.
(ii) As to Life Insurance products, Pure term insurance prod-
One of the Key initiatives taken by Government of India for ucts with/without return of premium, non-linked non-
strengthening cooperatives is to allow PACS to carry out the participating endowment product, Immediate annuity
activities of Common Service Centers (CSC). products are available.
(iii) Micro Insurance products and Social Insurance products
In 2015, IRDAI allowed CSCs to sell insurance products. In are also included.
2019, these Common Service Centers have been redefined
by IRDAI as "Common Public Service Centers" (CPSCs). (iv) In addition to that, IRDAI is going to introduce an all-
"CPSC" means the "Common Service Centre" established in-one affordable insurance product to provide basic so-
under Digital India Program of Government of India and cial safety net coverage to rural households. It combines
implemented by M/s CSC e-Governance Services India Lim- life, health, accident, and property insurance under one
ited and includes similar centers established by the Special policy, making it accessible and affordable for a wider
Purpose Vehicle (SPV) of respective State Governments. segment of the population.

Therefore "CPSC-SPV" means the Special Purpose Vehicle PACS has a network of Members of approximately 12 crore
of respective State Government incorporated to facilitate farmers, which can be a significant asset in disseminating
delivery of government, private and social sector services the benefits of insurance. Insurance Company may take ini-
to citizens of India through the Common Service Centers tiative in sensitizing these members to increase the num-
(CSCs) network, and it includes who for remuneration ar- bers of VLEs/RAPs.
ranges insurance contracts for specific products approved
The rural population is large and uninsured. A targeted
by the Authority with insurers on behalf of its clients and
offers other insurance related services through CSC Network. approach to develop VLEs /RAPs of PACS for insurance sell-
ing depends on their qualification, interest and aptitude.
Therefore, CPSC-SPV shall be an "Insurance Intermediary" Insurance companies may chart a growth path for VLEs /
under the Regulation. CPSC-SPV, on getting valid registra- RAPs depending on their proficiency in insurance selling. This
tion from the Authority to act as an insurance intermedi- will help VLEs / RAPs in visualizing a better and more remu-
ary, may enter into agreements with Insurers. Under CPSC- nerative career in insurance selling and nudge them in learn-
SPV, a band of Village Level Entrepreneurs (VLEs) or Rural ing insurance selling. Phase wise intensive training and a
Authorized Persons (RAPs) will be authorized to solicit the system for hand holding of VLEs /RAPs will go a long way in
approved insurance products after their successful comple- developing their insurance selling skills. Insurance portals in
tion of training and passing the stipulated examination. vernacular language will help VLEs /RAPs perform better.

Now PACS (CPSC -SPV) have the opportunity to partner with Printed publicity material in local language may play an im-
insurance companies to offer insurance products. These portant role in helping people understand and create trust.
partnerships can involve the insurance company providing It also creates feel good factor and people value it and find
the products and the PACS acting as the distribution chan- it worthy of keeping with them. Intensive marketing efforts
nel, reaching out to their members with the insurance of- of the Insurance Companies will increase the numbers.
ferings through VLEs/RAPs.
By offering insurance, PACS can strengthen their position in
PACS (CPSC -SPV) would sell simple 'Over the Counter' (OTC) increasing their income on the one hand and on the other
insurance products which mean the simple vanilla product hand a greater number of people are brought under the
wherein each benefit is predefined and disclosed upfront Insurance umbrella reducing the Insurance Protection Gap.
clearly at the time of sale and is simple to understand. Pre- Let 2025, International Year of Cooperatives be the onset
underwritten products generated by the system of Non-Life of PACS to become an effective Insurance Distribution
Products and Life Products will be sold. Channel.
(i) The products of Non-Life Insurance that may be sold
through this channel are Motor comprehensive insur- References:
ance package policy and Third-Party liability policy for From various sources.

28 July 2025 The Insurance Times