ARTICLE · 20 OCTOBER 2023

Bima Vahak: Latest Distribution Channel In The Insurance Sector

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Towards the end of 2022, the Insurance Regulatory and Development Authority of India ("IRDAI") commiBed to extend 'Insurance for All' by 2047, and consItuted a commiBee to make recommendaIons regarding the following...

IndiaInsurance

Ankita Hariramani

Anushka Narayan

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I. BACKGROUND

Towards the end of 2022, the Insurance Regulatory and Development Authority of India ("IRDAI") commiBed to extend 'Insurance for All' by 2047, and consItuted a commiBee to make recommendaIons regarding the following:¹

Bima Vahak, a new channel of insurance distribuIon;
Bima Vistaar, simple, economical, and comprehensive insurance products;
Bima Sugam, a digital public infrastructure to facilitate the e-commerce of insurance products.

While the launch of Bima Sugam is reportedly delayed, the IRDAI has laid down a regulatory framework for the distribuIon of Bima Vistaar. On 9th October 2023, IRDAI issued the Insurance Regulatory and Development Authority of India (Bima Vahak) Guidelines, 2023 ("Guidelines") to establish an insurance distribuIon channel specifically dedicated to rural areas. The Guidelines nudge insurers to progressively engage Bima Vahaksin every Gram Panchayat in India before 31st December, 2024.² The Guidelines will

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