The Indian Insurance Regulatory and Development Authority (IRDA) is set to launch an ambitious insurance plan designed to simplify and extend insurance coverage to a broader demographic, especially focusing on rural areas.
The plan, named Jan Utthaan Bima Vistaar, aims to provide comprehensive social security by combining life, health, personal accident, and property insurance into a single policy.
Overview of the Policy:
- Comprehensive Coverage: The new policy will incorporate various insurance protections, including life, health, personal accident, and property coverage.
- Premium Costs: The premium for this policy is expected to be around ₹1500 per policy, making it accessible for a wide range of individuals.
- Health Coverage: Under the health segment, the policy will offer up to ₹5,000 of cashless payment for hospital bills for up to 10 days, without needing to submit any documents.
- Individual Components: The life insurance component of the policy might cost around ₹800 in premium, while health and personal accident coverage could be available for ₹500 and ₹100 respectively.
- Property Insurance: The premium for property insurance could be less than ₹100, further making this an affordable option for many.
Digital Integration:
- IRDA has recently approved the digital platform ‘Bima Sugam,’ which will act as an online marketplace for buying, selling, and settling claims for all types of insurance policies.
Implementation and Impact:
- The policy is designed to boost financial inclusion by encouraging more people to invest in insurance as a means of safeguarding against various risks and uncertainties.
Commission Structure:
- Agents selling the policy could receive a commission of 10%, incentivizing the distribution and adoption of the policy across diverse markets.
Key Takeaways:
- Jan Utthaan Bima Vistaar is an innovative initiative by IRDA to provide a comprehensive social security cover at an affordable cost.
- The policy is expected to promote insurance penetration in rural areas, aligning with the broader goal of financial inclusion.
- The premium structure and the benefits outlined are aimed at making insurance both accessible and comprehensive, covering a range of potential needs from health emergencies to personal accidents and property damage.
- The integration of this policy with the digital platform Bima Sugam is expected to streamline the process of insurance transactions, making it more user-friendly and efficient.