Bima Vahak: IRDAI | 05 Jun 2023

Recently, IRDAI (Insurance Regulatory and Development Authority of India) has issued a draft Guidelines for Bima Vahak, which is a dedicated distribution channel to reach out to rural areas with the aim to improve insurance penetration in the Hinterland.

About:
- Bima Vahak Program is one of the components of IRDAI’s "Insurance for all by 2047” goal, which aims to improve the accessibility and availability of insurance products throughout India.
- It will serve as a crucial last-mile connection for insurers by establishing a field force of both corporate and individual representatives. These representatives, known as Bima Vahaks, are responsible for the distribution and servicing of insurance products.
- The Bima Vahak scheme is closely aligned with the Lead Insurers concept introduced by IRDAI.
  - Lead Insurers coordinate the deployment of resources to ensure maximum coverage of Gram Panchayats, which are Local Self-Governance units in India.
Objectives:
- It focuses on onboarding women as Bima Vahaks, as they can gain the trust of locals and facilitate insurance penetration in various communities.
- By engaging with the local population, Bima Vahaks aim to enhance accessibility and awareness of insurance in every nook and corner of the country.
Significance:
- The Bima Vahak initiative is expected to significantly contribute to enhancing insurance inclusion, raising awareness, and adapting insurance offerings to meet the diverse needs and aspirations of people in every Gram Panchayat across India.

IRDAI, founded in 1999, is a regulatory body created with the aim of protecting the interests of insurance customers.
- It is a statutory body under the IRDA Act 1999 and is under the jurisdiction of the Ministry of Finance.
It regulates and sees to the development of the insurance industry while monitoring insurance-related activities.
The powers and functions of the Authority are laid down in the IRDAI Act, 1999 and Insurance Act, 1938.