The groundbreaking ‘Bima Vistaar’ insurance product, encompassing life, health, and property coverage within an affordable, all-inclusive package, is on the verge of its official release.
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A senior official confirmed That the Insurance Regulatory and Development Authority of India (IRDAI) has the product’s design is in its final stages, following extensive discussions with representatives from the Life and General Insurance Councils and industry experts.
‘Bima Vistaar’ was initially proposed by Debashish Panda, Chairman of IRDAI, as a crucial step within a series of reforms aimed at realizing IRDAI’s vision of extending insurance coverage to all citizens by 2047. Pricing discussions for this ‘affordable’ product are nearing completion, along with considerations for the inclusion of specific riders as supplementary features, as noted by the official.
When questioned about insurers’ willingness to offer the product at an ‘affordable’ rate, the official cited the enthusiastic response from industry players following discussions with the regulatory body. The insurance product is set to feature transparent and easily comprehensible terms and conditions while harnessing digital advancements to facilitate digital claims verification and automatic disbursement of settled amounts to beneficiaries.
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Leveraging cutting-edge technologies (CET) such as Artificial Intelligence (AI) and Machine Learning (ML), a digital platform is under development to extend insurance coverage to remote and underserved regions.
Women-Centric Distribution Model
The launch of ‘Bima Vistaar’ will draw inspiration from the successful Bank Mitra model, which played a pivotal role in the success of the government’s financial inclusion initiative, Pradhan Mantri Jan Dhan Yojana (PMJDY).
Currently, there are 8.5 lakh Bank Mitras serving as crucial links in providing financial services to remote areas. To further bolster financial inclusion efforts, ‘Bima Vistaar’ is adopting a women-centric distribution model. This strategy involves appointing women, including members of Self Help Groups, as ‘Bima Vahaks,’ with a primary focus on reaching underserved rural areas.
IRDAI believes that female ‘Vahaks’ will be better positioned to persuade women in rural households of the importance of affordable social security and insurance coverage through ‘Bima Vistaar.’
“In remote areas, insurance field staff need to build trust within the local population, demonstrating patience and persuasive skills to explain the significance of risk coverage. In this context, a women-centric distribution model emerges as an appropriate approach,” emphasized the official.
IRDAI aims to promote insurance awareness and accessibility through the combined efforts of ‘Bima Vistaar,’ ‘Bima Vahak,’ and the digital platform ‘Bima Sugam.”