India rolls out all-in-one insurance for rural communities
India rolls out all-in-one insurance for rural communities | Insurance Business Asia
Insurance News
India rolls out all-in-one insurance for rural communities
Brokers welcome new offering
Insurance News
By
Roxanne Libatique
The Insurance Regulatory and Development Authority of India (IRDAI) has launched Bima Vistaar, an all-in-one insurance product tailored for rural communities across India.
Priced at Rs 1,500 per policy, Bima Vistaar offers comprehensive coverage for life, health, personal accident, and property risks, aiming to bolster insurance penetration in the country.
Bima Vistaar coverage
The announcement was made at a summit of insurance CEOs, where IRDAI chairman Debasish Panda emphasised the initiative’s importance.
According to The Indian Express’s report, the policy breaks down as follows:
Rs 820 for life cover
Rs 500 for health cover
Rs 100 for personal accident cover
Rs 80 for property cover
For family coverage on a floater basis, the total cost is Rs 2,420, with an additional Rs 900 for other family members.
The coverage includes a sum assured of Rs 2 lakh each for life, personal accident, and property insurance. Health cover, known as hospi cash, offers a daily benefit of Rs 500 for up to 10 days, with a maximum payout of Rs 5,000, requiring no documentation.
Agents selling the product will receive a 10% commission to encourage wider distribution.
Brokers welcome all-in-one insurance product
Narendra Bharindwal, vice president of the Insurance Brokers Association of India (IBAI), said the Bima Vistaar would play a key role in protecting individuals and families from a range of risks.
“This initiative not only encourages more people to invest in insurance for their protection but also promotes financial inclusion,” he said, as reported by The Indian Express.
Bharindwal predicts that Bima Vistaar’s pricing will make it accessible to many, emphasising the importance of intermediaries in promoting the product.
“The competitive pricing of Bima Vistaar is expected to benefit many individuals and families by providing them with a reliable insurance solution at a reasonable cost. In addition to applauding IRDAI’s commendable initiative with Bima Vistaar, we also encourage the inclusion of provisions that enable intermediaries to effectively promote and sell these products,” he said.
Bima Trinity in India
IRDAI, along with the General Insurance Council and Life Insurance Council, is working on creating a “Bima Trinity,” comprising Bima Sugam, Bima Vistaar, and Bima Vahak, a women-centric distribution channel aimed at rural areas.
“Bima Sugam will be the protocol or the platform. Bima Vistaar is a product where we are trying to design it in a manner which will be accessible to the common man. It will be a bundled product of life, health, causality, and property,” Panda said.
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