According to recent news, the Insurance Regulatory Development Authority of India (Irdai) suggested pricing Bima Vistaar at Rs 1,500 per policy. The proposal was made during a meeting of insurance CEOs, addressed by Irdai chairman Debasish Panda on April 23. Bima Vistaar offers life cover for Rs 820, health cover at Rs 500, personal accident cover at Rs 100, and property cover for Rs 80. If bought for the whole family together on a floater basis, it's Rs 2,420 initially, with an additional Rs 900 charged for the rest of the family members.
Every Bima Vistaar policy guarantees a sum assured of Rs 2 lakh for life, personal accident, and property covers. Moreover, the health cover, called hospi cash, offers a sum assured of Rs 500 for 10 days. Without needing bills or documents, the maximum amount available is Rs 5000. Agents selling Bima Vistaar policies can earn a commission of 10 per cent, incentivizing wider distribution and adoption of the product.
Nilesh Parmar, Chief Operating Officer, Future Generali India Life Insurance Company said, “In a bid to improve insurance penetration accessibility and affordability amongst the Indian masses, the Insurance Regulatory and Development Authority of India (Irdai) has been fast-tracking the introduction of vital reforms that can spur competition and lower insurance premiums. Recognizing the existing protection gaps and myriad challenges faced by members within the Indian insurance ecosystem, Irdai has taken a huge step and introduced its Bima Vistaar product to make insurance affordable for even the rural masses.”
“Starting from just Rs1,500 per policy that offers life, health, personal accident as well as property insurance coverage, this revolutionary insurance product can also be had with a Family Floater option for those looking to secure their loved ones with a basic social safety net against both life and non-life risks. Moreover, with the imminent launch of the Bima Sugam portal, Bima Vistaar policyholders can expect fast claims settlement and a robust grievance redressal mechanism to assuage their insurance-related concerns. Creating a women-centric distribution channel called Bima Vahak will also support the cause of women's empowerment, completing the ‘Insurance Trinity’ envisaged by Irdai in late 2022. We believe that the launch of Bima Vistaar will herald the dawn of a new era of accelerated insurance adoption and power rapid socio-economic development across previously neglected population segments,” Parmar added.
The proposal says that settling claims might differ depending on the segment. For the property part of the combined solution, settlements will happen based on specific parameters. This means quick payments will be made depending on how severe the event is.
To boost the product's reach, agents distributing Bima Vistaar policies are expected to receive a commission rate of 10 per cent. This is meant to motivate broader dissemination and uptake of the product. The insurance regulator is expected to declare these procedures soon formally.
Naval Goel, founder and CEO, PolicyX.com, an insurance web aggregator, said “In terms of coverage provided by such plans might not be adequate, but this initiative is aimed at increasing insurance awareness amongst people and can do wonders for a country like India where people don't take insurance seriously. This product can be a good entry point for the low-income segment and can gradually buy more comprehensive covers.
