Page 158 - India Insurance Report 2023- BIMTECH

146 India Insurance Report - Series II

The Common Service Centres (CSCs), an initiative by the Ministry of Information Technology,
initially established as outlets at the panchayat level to offer government-related services to rural
communities, have evolved to include financial services, including insurance. More than a hundred
thousand of these village-level entrepreneurs (VLEs) are actively providing insurance-related services.
This model has demonstrated its success and is making a valuable contribution. It’s worth noting
that these VLEs are authorized to sell only simple and standardized insurance products that have
been approved by regulators, preventing any potential mis-selling.

A few years ago, the IRDAI introduced a completely digital platform called the “Point of Sale Person”
(PoSP). These individuals are authorized to exclusively sell standardized and fully digital insurance policies
with small coverage amounts through handheld electronic devices or mobile phones. They are affiliated
with approved intermediaries such as insurance brokers or corporate agents. Over the past four to five
years, this innovative channel has experienced remarkable expansion. According to the latest report,
approximately one million PoSPs agents predominantly operate in semi-urban and rural areas.

2.5.Mobile Apps & e-Commerce Platforms

Insurtech companies specialize in technology services devoted to insurance. The insurance firms are
now collaborating with insurtechs to improve their systems and enhance user experience. Nearly all
insurance companies offer mobile applications that allow customers to purchase policies and make
premium payments through payment gateways, access policy-related services with ease, file claims, track
their progress, and receive claim payments. Insurance, especially retail products, is no longer the exclusive
domain of a select few agents. Technology has made awareness and sales more accessible, and today,
individuals can purchase such policies from e-commerce platforms like Amazon, PayTm, and Flipkart.

Technology is also gradually bridging the urban-rural divides. Governments are increasingly becoming
more attentive to the requirements of the less privileged, and welfare programs and social security, including
insurance, are the focus areas. The Government of India has endorsed the United Nations’ Sustainable
Development Goals (SDGs) and has implemented extensive, all-encompassing initiatives to advance the
well-being of all Indians. These programs are accessible to all eligible individuals across the country, but rural
communities constitute the largest segment of beneficiaries due to the sheer magnitude and economic challenges.

2.6.On-Going Initiatives

The following successful, ongoing initiatives with visible insurance elements have given a strong
push to the concept of insurance security, inclusion and trust:

The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government initiative that aims to promote
financial inclusion. This program established bank accounts for individuals and offered a benefit of Rs
30,000 in the event of natural death, provided by LIC. Additionally, the government extended an accident
insurance cover of Rs 1 lakh through General Insurance Companies. To qualify for the program,
individuals had to be aged between 18 and 59 and enrol under PMJDY. By the end of the 2022-23 fiscal
year, more than 48 crore bank accounts had been opened under this scheme. Despite being zero-balance