Concerned over the low insurance penetration especially in
rural areas, the Insurance Regulatory and Development Authority (IRDA) has
released new guidelines allowing insurance companies to use licenced Common
Service Centres (CSCs) as distribution networks in rural areas. An initiative of the National e-Governance Plan, the CSC model
will operate in rural areas without access to internet. The plan provides services
like e-governance, education and utility payments and works on the
public-private partnership model.
With the help of a Rural Authorised Person (RAP), these
centres will help insurance companies to market certain categories of retail
policies through a special-purpose vehicle. A RAP will act as an insurance
agent. The RAPs will help prospective insurance buyers in choosing appropriate
product based on their need, and obtain detailed information relating to
proposers/persons/risks to be insured and protection needs and suggest on the
adequate cover.
Moreover, the RAPs will also assist prospect
buyers/policyholders in all manners, whether, it’s about premium payment, assignment
of nominee, claim procedure, filing forms or collecting of documents like death
certificate or any other document required for the speedy settlement of the
claims.
The regulator hopes this scheme will help insurance reaching
out to the most untapped areas of the country. Through this scheme, people in
remote will come to know about various insurance products and their benefits
and hence insurance penetration in the areas can be increased. For the rural
areas, the regulator has directed all insurance companies to design special
products to be marketed exclusively through the CSC model and file the products
for approval with the regulator. These products will be tailored especially
according to needs of a particular area or the insured. Under the products, the
maximum Sum Assured per life or risk will not be more than Rs two lac, except
for motor insurance.
The RAPs will have to undergo 20 hours of mandatory training
and register on the Learning Management System website. The online examination
of RAPs will be conducted by the National Institute of Electronics and
Information Technology, which is an autonomous scientific society of the
Government of India, Department of Electronics and Information Technology.
The RAPs will have to provide necessary assistance to
the policyholders, claimants or beneficiaries in complying with the
requirements for settlement of claims by the insurer and forward any
information received from the client regarding a claim or an incident that may
give to a claim without any delay. Also, if there is any delay on the part of
the insurer to settle the claim, the RAPs will have to inform the policyholder
accordingly, said the guidelines, adding, to increase persistency, the RAP will
have to ensure remittances of premiums by policyholders within the specified
time by giving them notice well before time, both orally and in writing.
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