IRDAI To Soon Roll Out All-In-One Insurance Cover Bima Vistaar; Know KYC Requirement, Policy Premium Here

The Insurance Regulatory and Development Authority of India (IRDAI) is soon expected to launch an all-in-one affordable insurance product Bima Vistaar that will offer life, health and property cover to the public.

According to a media report, under this flagship insurance cover claim will be auto credited in the bank accounts of beneficiaries' depending on the intensity of the damage caused to their properties. Reportedly, the first of its kind policy Bima Vistaar policy will be launched soon, and is aimed to provide an insurance cover to every citizen.
Distinct features of IRDAI's Bima Vistaar policy:

There will be a component of parametric property insurance cover in the Bima Vistaar policy. Parametric insurance is the insurance contract against the occurrence of a specific event and provides coverage on the basis of damage occured on account of a specific event.

Claims will be auto credited in the account of the beneficiary depending on the intensity of the damage caused to the property. For flood insurance after a predetermined magnitude of rain or flood, the claim amount would be auto credited to the account holders affected by the calamity.

The maximum limit for the sum assured for property insurance under the Bima Vistaar policy would be Rs 1 lakh.

What all will be covered under the government's Bima Vistaar policy?

Bima Vistaar policy will cover life, health, accident and property of the individual buying the policy.

Bima Vistaar policy premium, cover: Premium for coverage of life, accident, property and health under the Bima Vistaar policy would be between Rs 800 to Rs 1200 per annum.

Life and accident coverage would be Rs 2 lakh, property Rs 1 lakh and Rs 500 per day for hospitalization.

What is there for women in Bima Vistaar policy?

The launch of Bima Vistaar is expected to be build upon the success of the Bank Mitra model, and thus Bima Vistaar is adopting a women centric distribution model.

The Bank Mitra model played a crucuial role in the success of Pradhan Mantri Jan Dhan Yojana (PMJDY).

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.

In a circular, the IRDAI said that Bima Vahaks shall be deployed in each Gram Panchayat before 31st December 2024.

The IRDAI guidelines issued on October 9, 2023 said that A Bima Vahak shall:

i) sell and service Bima Vistaar and such other insurance products specified by
the Authority
ii) sell and service only using handheld electronic communication devices that
are directly integrated to the electronic platform of the insurers;
iii) not be allowed to collect any fees or charges from the policyholder or
prospective policyholder, other than the insurance premium;

KYC Compliance

Every Insurer shall remain responsible for ensuring KYC and AML compliance with respect to the policies sourced through Bima Vahaks.