There is going to be a big change in the insurance sector in the new year. Insurance Regulatory and Development Authority of India (IRDA) is going to launch Insurance Extension Scheme to provide the facility to buy multiple insurance under one product.
What is IRDA’s plan?
Insurance carriers will be hired to take this insurance extension scheme to every village. IRDA has set a target of appointing an insurance carrier in every gram panchayat of the country by the end of the year 2024. Insurance companies will primarily employ women as insurance carriers. According to IRDA sources, the insurance expansion scheme can be started any time in the new year.
There is a strong possibility that it will start from the month of January. The insurance extension product will have the facility of life, health, accident and property insurance together. That means by paying one premium the consumer will be able to avail the benefits of four insurances simultaneously. According to IRDA sources, the premium of the Insurance Extension Scheme will be quite low so that more and more people can buy this product.
Every citizen will be covered under insurance by 2047
IRDA has set a target of bringing every citizen of the country under the insurance coverage by the year 2047 and insurance expansion is an effort in this direction. According to sources, the amount of insurance cover under insurance extension can be between one-two lakhs. According to IRDA, the insurance carrier scheme will start as soon as the insurance expansion is implemented. Insurance companies will appoint insurance carriers as per IRDAI rules.
Insurance carriers will have electronic machines with the help of which they will be able to do KYC of customers and also make payment transactions from customers in electronic form. Appointing insurance carriers in rural areas will increase the penetration of insurance because the local person in the village understands the needs of the people there well and the insurance carrier will be able to explain the benefits of insurance to them in the local language. Will be able to sell the product.
Currently, an agent can sell an insurance product from only one company. Suppose an agent has taken the code from the company to sell Star Health insurance, then he cannot sell Care Health insurance in his own name. From the new year, these agents will be able to sell products of the same category from many companies. The implementation of this rule can be announced any time in the new year.
