IRDAI issues draft Bima Vahaks guidelines

2 Jun 2023 , 10:53 AM

The regulatory organisation Irdai announced the draft regulations for ‘Bima Vahaks (BV),’ which aims to establish a particular distribution channel at the level of Gramme Panchayats. The suggested Corporate Bima Vahaks and Individual Bima Vahaks for the distribution route.

The BVs, both corporate and individual, would have the authority to carry out tasks such as gathering proposal data, KYC documents, and organising services linked to claims.

‘Every Insurer shall remain responsible for ensuring KYC and AML (anti-money laundering) compliance with respect to the policies sourced through Individual Bima Vahaks and Corporate Bima Vahaks,’ read the draught, on which Irdai has requested stakeholder views by June 22.

According to the law, each insurer must offer optional methods for prospects or policyholders to pay their premiums.

In order to promote direct remittance of premiums, Bima Vahaks should also be urged to use electronic payment systems supported by insurers.

According to Irdai, the goal of BV is to create a specialised distribution channel that is concentrated on boosting insurance inclusion and raising awareness in every Gramme Panchayat, improving accessibility and availability of insurance in every nook and cranny of the nation.

Another goal is to find and develop local resources that are aware of and sensitive to the needs of each Gramme Panchayat and village, with a special emphasis on encouraging the recruitment of women who can win the confidence of the community as Bima Vahaks for the distribution and servicing of insurance products.

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