Bima Vistaar, a first of its kind all-in-one affordable insurance product offering life, health and property cover is likely to be launched soon.
“The product is in the final stages of design based on discussions with Life and General Insurance Councils and the industry,” a senior official of the Insurance Regulatory and Development Authority of India (IRDAI) reported Business Line.
The IRDAI Chairman Debashish Panda proposed this as part of a series of reforms aimed at realising the regulator’s vision of providing cover to everyone by 2047.
Discussions on the ‘affordable’ pricing of the product are on the last legs and the inclusion of some riders as added features are being worked out, the official said.
Asked if the insurers were willing to offer it at an ‘affordable’ price, he said based on the discussion the regulator has had with the industry, the companies were indeed ‘happy’ and bullish on Bima Vistaar.
It will have simple and easily understandable terms and conditions. It will also take complete advantage of digital advancements and is likely to have a provision where the claim can be verified digitally and the settled amount can be credited to the beneficiaries’ account automatically.
The rollout of Bima Vistaar will build upon the success of the Bank Mitra model, which played a pivotal role in achieving the Centre’s financial inclusion programme Pradhan Mantri Jan Dhan Yojana (PMJDY).
Currently, there are 8.5 lakh Bank Mitras serving as the crucial last mile link to reach financial services. Building on this model, Bima Vistaar is adopting a women centric distribution model.
Under this approach, women, including members of Self Help Groups, will be appointed as ‘Bima Vahaks’ with the primary focus on reaching underserved rural areas.
The IRDAI believes that women ‘Vahaks’ will be better positioned to convince women members of the rural households on the need for affordable social security and to take cover through Bima Vistaar.