Page 12 - Insurance Times December 2023

The following three regulations have year on plans that offer immediate or network of banks through their
been repealed: Insurance Regulatory delayed annuities, and 10% of all single branches throughout the entire nation.
and Development Authority of India premiums received in a given year on According to IRDAI, banks are involved
(Payment of Commission) Regulations, group pure risk policies. in the distribution of insurance products
2023; Insurance Regulatory and Devel- in their capacities as master policyhold-
opment Authority of India (EoM of In- IRDAI establishes a com- ers, corporate agents, or both, subject
surers transacting Life Insurance Busi- mittee to boost banks' in- to the relevant regulatory framework.
ness) Regulations, 2023; and Insurance
Regulatory and Development Author- volvement in the sale of in- It stated that although banks have the

ity of India (EoM of Insurers transact- surance goods option to establish a different legal com-
ing General or Health Insurance Busi- pany to act as insurance brokers for the
A high-level panel has been established distribution of insurance goods, they
ness) Regulations, 2023.
by regulator IRDAI to recommend ways have not yet taken this option. The In-
The exposure draft has maintained and to encourage banks to participate in surance Regulatory and Development
is still proposing an EoM cap of thirty making insurance products easily acces- Authority of India (IRDAI) stated in a
percent for general insurers and thirty- sible throughout the nation. The con- circular that "leveraging the vast bank
five percent for standalone health in- tribution of the lenders as corporate branch network is one way of reaching
surers. agents was 5.93 percent of non-life pre- the last mile and making insurance prod-
As stated in the draft, life insurers are miums and 17.44 percent of new busi- ucts available to the nook and corner of
not allowed to spend more than 5% of ness premiums for life insurance in 2022- the country" when establishing the
all single premiums collected in a given 2023, notwithstanding the extensive taskforce on bancassurance.
The regulator stated that in order to
Bima Vahak rules will take effect when the all-in- accomplish the goal, it is deemed nec-

one Vistaar product is released. essary to examine the current
bancassurance intermediation model
According to the insurance regulator, the rules for the women-focused insur- and make any required changes to the
ance distribution channel, Bima Vahak, would be enforced with the introduc- regulatory framework that oversees it,
tion of Bima Vistaar.
with an emphasis on safeguarding the
The last details of a comprehensive standard insurance policy called Bima interests of policyholders.
Vistaar are being worked on by the Insurance Regulatory and Development
J Meena Kumari, Executive Director
Authority of India (IRDAI), with a launch date anticipated soon.
(Life), IRDAI, is in charge of the task
"The Bima Vistaar launch date will be the effective date of the Insurance force. Banks and insurance industries
Regulatory and Development Authority of India (Bima Vahak) Guidelines, are also represented on the panel. The
2023. It is a comprehensive insurance product that will be offered in due group has been requested to recom-
course," the regulator stated in an announcement. mend regulatory provisions regarding
In order to improve insurance inclusion and raise awareness in every village bancassurance partners' market con-
and gram panchayat, Bima Vahak's primary goal is to create a women-cen- duct standards, particularly in light of
tric dedicated distribution channel. This will increase insurance's accessibility allegations regarding forced and mis-
and availability throughout the entire nation. represented sales under the distribu-
tion model.
Its goal is to find and create locally based resources that are trusted and
valued by the people living in their village or gram panchayat, and who are
aware of and sensitive to the needs of the community. Join

Every insurer should work with individual Bima Vahaks and/or Corporate Bima Online Certificate Course
to gradually cover every gram panchayat, in accordance with Bima Vahak on
rules.
Digital Trends in Motor
Before December 31, 2024, all gram panchayats must have installed Bira
Vahaks. To guarantee that gram panchayat coverage is maximized, lead in- Insurance
surers of each State and Union Territory (as specified in the Annexure) must For details please visit
coordinate resource deployment, according to IRDAI. www.smartonlinecourse.co.in

12 December 2023 The Insurance Times