Page 9 - LIFE INSURANCE TODAY Novemver 2017

f. No of insurers with whom agreement signed: General Earlier, general insurance covers including personal
- 16; Health - 3; Life - 18 (14(Renewal) + 4(Fresh & accident Insurance and cattle/livestock Insurance were
Renewal permitted to be solicited and marketed under the CSC
g. No of policies sold - scheme. For life insurance, it has been stipulated that
products developed for CSC Model shall not have the sum
i) Motor Third Party - 56,484;
assured (per life or risk) exceeding rupees two lakhs,
ii) PA - 4,521; except for motor insurance. Such products approved by
iii) Life Insurance - 2,622; the Authority for the CSC Model shall be marketed only
through the CSC model.
iv) Crop - 1,187;
v) others - 223 The insurance regulator has said that the inclusion of new
h. Added new products such as motor comprehensive, product lines under CSC-SPV was done after receiving
travel insurance, crop insurance and Government request from insurers to expand the list of products.
Insurance Schemes to the list of approved products. However, it has specified that the word CSC should be
prefixed to the products sold through the CSC-SPV channel.
Agreement Timeline: The procedure for disciplinary proceedings against the
CSC-SPV and the RAP has also been specified in the
The major challenge for the industry is to design specific
proposed regulations.
products for the new distribution channel. Non-life
products like agriculture or crop insurance, insurance of The regulations also specify reports to be submitted by the
animals etc. will now take off in a big way through CSC.
insurers and CSC-SPV to the Authority. Common service
Insurance companies enter into an agreement with CSC-
centres (CSCs), according the government, are "a strategic
SPVs for distribution of its products through these centres. cornerstone of the Digital India programme". They are the
The timeline for such an agreement is fixed for three years.
access points for delivery of various electronic services to
Insurance companies at their end, amalgamate their
villages in India, thereby contributing to a digitally and
technology portals with the interface used by CSC-SPVs.
financially inclusive society.
A RAP within the contours of the village is authorised to
solicit insurance business on completion of the necessary Selling Crop Insurance through CSC:
training and examination as specified by the authority. A The existing platforms -- banks, insurance companies and
RAP sells and procures general insurance products. The cooperatives -- are not sufficient for the last mile
essential paper work and identification of the insured are connectivity to non-loanee farmers. Moreover, banks are
seamlessly carried out at the CSC with the help of not that keen to sell crop insurance policies to non-loanee
technology tools. Premiums are collected by CSC-SPV farmers, while insurance companies and cooperatives have
centres in cash, which is later remitted to the insurer. limited reach in villages. So, Government has decided to
use CSC infrastructure and post offices. There are 1.75 lakh
The policy contract, too, is submitted to the prospect CSCs which can be used for collection and uploading of
through the RAPs. Such personal touch points through crop insurance documents at a nominal rate. Insurance
RAPs have given those in villages' access to simple-to- regulator IRDA has already given permission to agents and
understand products to mitigate the risk to life, motor, intermediaries to access the CSC portal for crop insurance.
agriculture pump sets, personal accident insurance and
farmers' package policies. By limiting the sum insured of This is being tested at present. CSCs, set up under the
these products to Rs.2 lakh (other than for motor Ministry of Electronics and Information Technology, till
insurance), insurers are able to extend such micro-covers now were being utilised for booking railway tickets,
and obviate the risk emerging from such groups. Further, providing Aadhaar numbers and passport applications. At
insurers have consciously decided to keep away complex present, it is mandatory for loanee farmers to take the
products which require specialised knowledge on premium crop insurance policy. The government wants both loanee
computation for RAPs' to solicit and service products. and non-loanee to take advantage of Pradhan Mantri Fasal

Life Insurance Today November 2017 9

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