Why in news? The Insurance Regulatory and Development Authority of India (IRDAI) issued draft guidelines for Bima Vahaks, a new initiative aimed at enhancing insurance inclusion and awareness across the country.

Highlights:

• Bima Vahaks or “insurance volunteers,” are set to become a powerful force in extending insurance coverage to every Indian, regardless of their geographical location.
• The primary objectives of the Bima Vahak guidelines are to establish a dedicated distribution channel focused on enhancing insurance inclusion and creating awareness in every Gram Panchayat (village council).

Who are Bima Vahaks?

• Bima Vahak” is a representative who will sell and do services to their assigned Gram panchayat regarding Insurance products.
• The insurance is known as “Bima Vistar” which will provide protection against health, property, and life.

What are the guidelines issued for Bima Vahaks?

• It emphasize the identification and development of local resources within each Gram Panchayat, with a special focus on encouraging the on boarding of women as Bima Vahaks to gain the trust of the locals.
• Guidelines define two types of Bima Vahaks: Corporate Bima Vahaks and Individual Bima Vahaks. Corporate Bima Vahaks refer to legal entities registered under Indian laws and engaged by insurers.
• The scope of activities assigned to Bima Vahaks includes collecting proposal information, KYC compliance, coordination and support in policy, claims-related servicing, and facilitating premium payment processes.
• As, the goal of ‘Insurance for All by 2047,’ the Bima Vahaks will serve as the backbone of efforts to ensure every Indian has access to vital financial protection.