The IRDAI will deploy bima vahaks (BVs) in every gram panchayat (cluster of villages) before 31 December 2024, the regulator said as it released guidelines for BVs on 9 October.
The BV channel is a women-centric insurance distribution avenue to enable insurance products to reach every nook and corner of a village, with each gram panchayat having a ‘vahak‘ to sell and service simple insurance products.
A BV would be a legal person registered in accordance with the relevant laws and engaged by an insurer. An individual BV could be any individual appointed by an insurer or appointed by a corporate BV.
The guidelines stipulate, “Every insurer shall endeavour to engage individual bima vahaks and/or corporate bima vahaks with the focus to progressively achieve coverage of every gram panchayat.”
There is no restriction on the number of insurers a BV is allowed to work with. BVs, both corporate and individual, will be authorised to undertake activities like the collection of proposal information and know-your-customer (KYC) documents and coordinate claims-related services.
BVs are to be encouraged to adopt electronic payment modes facilitated by insurers to enable the direct remittance of premiums.
Implementation date
IRDAI also said that the BV guidelines will come into force with the launch of Bima Vistaar, an all-in-one affordable insurance product offering life, health, and property cover for rural households with the aim of financial inclusion and social security. The regulator is finalising the details of the Bima Vistaar, which is expected to be launched soon.
The BV guidelines were released after a consultation process that included the release in May 2023 of an exposure draft of the guidelines for BVs. Minor changes were made to the guidelines following the feedback exercise.
