Page 8 - LIFE INSURANCE TODAY Novemver 2017

viability of the CSCs which have
been struggling for viability since
their inception. Some of the
SCAs, however, are not happy
with the move, as it is "eating
into their margins". CSCs enable
the three vision areas of the
Digital India programme:

In India, CSCs are set up by CSC
e-Governance Services India Ltd,
which is a special purpose
vehicle created specifically to
monitor the implementation of
the Common Service Centre
scheme of the government and ensure a centralised
Sustainability of CSCs: collaborative framework for delivery of services to citizens.
A Common Service Center (CSC) is an information and CSCs also collect Rs. 1 crore premium a day as agents for
communication technology
(ICT) access point created
under the National e-
Governance Project of the
Indian government. The
project plan includes the
creation of a network of
over 100,000 CSCs
throughout the country. The purpose of the project is to insurance companies. This has led to a higher renewal for
provide much-needed information and services to insurance firms and a better commission for the local
underserved Indians in rural areas. To get the licence in entrepreneurs who run the CSC. The CSC SPV is a private
insurance sector, the CSC operators have to pay an organization - the government holds just 49 percent equity
application processing fee of Rs 5,000 to IRDA for three - and so it can't get preferential treatment from the IRDA
years. and act as insurance aggregator.

For its renewal, they will have to pay Rs 1000. According The margins have been cut in cases of other services being
offered through the CSCs. The relationship between SCA
to the guidelines, the RAPs should have completed 20
and VLE has to be symbiotic. And as time goes, the
hours of theoretical (online) training and pass an exam
conducted by national institute of electronics and participation of the intermediaries will get leaner and
thinner. The statistics regarding the CSC-SPV channel for
information technology (NIELIT). As guidelines state, the
the period 1.4.2016 till 31.8.2016 is as under:
CSC SPV will distribute 80 percent of the remuneration
from insurers to the RAP, 12 percent to the SCA, agency a. No. of RAP who have undergone training & passed
which appoints the CSC operators and manage the exam/issued certificates - 11,621
CSC network in states and rest of 8 percent will go to the b. Total premium collected (New & renewal) - Rs. 117.42
SPV. crores
c. Total New Insurance premium - Rs. 6.62 crores
All VLEs who qualify as RAP will be provided with a (General) + Rs. 0.28 crores (Life)
monthly income of Rs 2000. This income is apart from
d. Total Renewal Premium - Rs. 110.52 crores (Life)
what they receive as remuneration from selling and
managing policies. The move is expected to boost the e. Total no. of customers serviced - 3.78 lakhs

8 November 2017 Life Insurance Today

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