Context:
The Insurance Regulatory and Development Authority of India (IRDAI) has recently proposed pricing its ambitious all-in-one affordable insurance mass product, Bima Vistaar, at Rs 1,500 per policy. Targeted at rural areas across the country, this proposal aims to make insurance accessible and affordable for rural communities.
Relevance:
GS III: Growth and Development
Dimensions of the Article:
- Bima Vistaar: An Overview
- About Insurance Regulatory and Development Authority of India
Bima Vistaar: An Overview
- Part of the Bima Trinity, Bima Vistaar introduces an innovative, all-in-one affordable insurance product covering life, health, and property.
- Designed to offer a basic social safety net with combined features of life, health, personal accident, and property insurance.
Key Features
- Life cover premium: Rs 820
- Health cover: Rs 500
- Personal accident cover: Rs 100
- Property cover: Rs 80
- Family floater policy: Rs 2,420, with an additional Rs 900 for other family members.
- Sum assured for life, personal accident, and property covers: Rs 2 lakh each.
- Health cover (hospital cash): Rs 500 for 10 days, with a maximum of Rs 5,000 available without producing bills or documents.
- Agents receive a commission of 10%, encouraging wider distribution.
Benefits for Broader Insurance Landscape in India
- Expected to provide reliable insurance at a reasonable cost, promoting financial inclusion.
- Safeguards individuals and families against various risks and uncertainties.
- A mass product aimed at increasing insurance penetration, anticipated to generate significant sales volume.
Future Prospects
- IRDAI, along with the General Insurance Council (GIC) and Life Insurance Council (LIC), aims to establish a “Bima Trinity” comprising Bima Sugam (digital platform), Bima Vistaar (product), and Bima Vahak (women-centric distribution channel).
- Competitive pricing and comprehensive coverage position Bima Vistaar as a viable and sustainable insurance solution in the long run.
About Insurance Regulatory and Development Authority of India:
- Establishment: IRDAI was founded in 1999 as a regulatory body to safeguard the interests of insurance customers.
- Statutory Body: It operates as a statutory body under the IRDA Act 1999 and falls under the jurisdiction of the Ministry of Finance.
- Regulatory and Development Authority: IRDAI is responsible for regulating and fostering the development of the insurance industry in India.
- Monitoring Activities: The authority closely monitors insurance-related activities to ensure compliance with regulations and standards.
- Legal Framework: The powers and functions of IRDAI are defined by the IRDAI Act, 1999 and the Insurance Act, 1938.
-Source: Indian Express
